"Thinking Traps": Mistakes and Solutions

Gyulshen Zayd kyzy Yuzbashieva

Journal number 2 ∘ Gyulshen Zayd kyzy Yuzbashieva ∘
"Thinking Traps": Mistakes and Solutions

DOI kodi: 10.52340/ekonomisti.2026.02.08

Expanded Summary

The article "Thinking Traps": Mistakes and a Way Out" examines economic development in the context of current economic policy. Its importance stems from the fact that human thinking and the decisions they make, which may not always be rational, play a certain role in this process. Errors in reasoning (cognitive distortions) can create unique "thinking traps" that become apparent during periods of economic, social, and environmental change. Based on behavioral economics concepts, several types of "thinking traps" are analyzed (herd behavior, confirmation bias, the illusion of stability, catastrophizing, labeling, and short-term thinking). The study is based on certain economic processes that have occurred globally, and in Azerbaijan in particular (the 2015 currency crisis, the pandemic, and the associated behavioral responses of the population and businesses). It is shown that "thinking traps" can exacerbate macroeconomic fluctuations and create additional risks for economic, environmental, and social systems. Institutional and educational measures are proposed to reduce the impact of such factors.

Financial crises and the COVID-19 pandemic have had a combined impact on the economic and psychological well-being of society. Economic instability, declining incomes, rising prices, and uncertainty about the future have increased stress and anxiety among the population, leading to the emergence of "thinking traps"/distortions, herd behavior, and increased catastrophizing and scarcity thinking. These socio-psychological-economic mechanisms can lead to poor financial decisions, increased distrust of economic institutions, and heightened sensitivity to economic risks. Thus, the combination of the financial crisis and the pandemic affects not only economic indicators but also people\\'s perceptions of economic reality, shaping new behavior patterns in the face of uncertainty. Considering these psychological factors is essential for understanding socioeconomic processes and developing effective economic policies in the face of increasing uncertainty.

Key words: behavioral economics, “thinking trap”, economic policy, model, state, errors, exit, uncertainty.

EKONOMISTI The international scientific and analytical, reviewed, printing and electronic journal of Paata Gugushvili Institute of Economics of Ivane Javakhishvili Tbilisi State University

DOI: 10.52340/EKONOMISTI DOI: 10.36172/EKONOMISTI E ISSN 2346-8432 Print ISSN 1987-6890	Journal number 2 ∘ Gyulshen Zayd kyzy Yuzbashieva ∘ "Thinking Traps": Mistakes and Solutions DOI kodi: 10.52340/ekonomisti.2026.02.08 Expanded Summary The article "Thinking Traps": Mistakes and a Way Out" examines economic development in the context of current economic policy. Its importance stems from the fact that human thinking and the decisions they make, which may not always be rational, play a certain role in this process. Errors in reasoning (cognitive distortions) can create unique "thinking traps" that become apparent during periods of economic, social, and environmental change. Based on behavioral economics concepts, several types of "thinking traps" are analyzed (herd behavior, confirmation bias, the illusion of stability, catastrophizing, labeling, and short-term thinking). The study is based on certain economic processes that have occurred globally, and in Azerbaijan in particular (the 2015 currency crisis, the pandemic, and the associated behavioral responses of the population and businesses). It is shown that "thinking traps" can exacerbate macroeconomic fluctuations and create additional risks for economic, environmental, and social systems. Institutional and educational measures are proposed to reduce the impact of such factors. Financial crises and the COVID-19 pandemic have had a combined impact on the economic and psychological well-being of society. Economic instability, declining incomes, rising prices, and uncertainty about the future have increased stress and anxiety among the population, leading to the emergence of "thinking traps"/distortions, herd behavior, and increased catastrophizing and scarcity thinking. These socio-psychological-economic mechanisms can lead to poor financial decisions, increased distrust of economic institutions, and heightened sensitivity to economic risks. Thus, the combination of the financial crisis and the pandemic affects not only economic indicators but also people\\'s perceptions of economic reality, shaping new behavior patterns in the face of uncertainty. Considering these psychological factors is essential for understanding socioeconomic processes and developing effective economic policies in the face of increasing uncertainty. Key words: behavioral economics, “thinking trap”, economic policy, model, state, errors, exit, uncertainty.