Generation Z and “Noise” Effect. Perspectives within the Field of Post-Pandemic Behavioural Economics

Abstract

The rationale of this paper research concerns on the necessity to understand Generation Z as a distinct footpath within behavioural economics. With thin wallets and expensive tastes, they highly value convenience and a social conscience. They don’t prize merchandises for they marginal utility anymore, but for the potential to be seamless and personal. Digitally native, they will define the next era of consumerism, and, to some extent, the behavioural economics. The global financial crisis of 2007-09 and the ensuing recession and the Covid-19 pandemic from 2020 have accelerated the pace of Generation Z economic behaviour, affected their attention span and the long run anticipations in favour of instant gratification, or “buy now, pay later” mentality. These two big economic shocks, one cyclical, one non-cyclical, have fostered pessimism among the young people who lived those provocative times. Many from Generation Z doubt they would be able to afford to retire or that they would ever own a home, hence the recklessness of their “all we have is now” behaviour. Luxury, welness, self-care is a template embraced by as many youngsters. The need for instant gratification is particularly influenced by the “noise “effect, a situation when people are to decide what to do, and not knowing what to do, they choose to do what they usually do by default. Considering the arguments and the facts presented in this paper, new insights could be delivered from this study to understand economic way of thinking and outcomes from a shifting type of economic actors. DOI: https://doi.org/10.53486/cike2023.30; UDC: 316.346.36:316.752; JEL: D01, D11, D12, B1, B21