Publish yr note: First released in 2003
Twenty years in the past, behavioral economics didn't exist as a box. such a lot economists have been deeply skeptical--even antagonistic--toward the belief of uploading insights from psychology into their box. this day, behavioral economics has develop into nearly mainstream. it truly is good represented in renowned journals and most sensible economics departments, and behavioral economists, together with numerous members to this quantity, have garnered the most prestigious awards within the profession.
This ebook assembles crucial papers on behavioral economics released considering that round 1990. one of the 25 articles are many who replace and expand previous foundational contributions, in addition to state-of-the-art papers that holiday new theoretical and empirical ground.
Advances in Behavioral Economics"will function the definitive one-volume source when you are looking to familiarize themselves with the hot box or maintain up to date with the newest advancements. it's going to not just be a middle textual content for college kids, yet should be consulted greatly by way of specialist economists, in addition to psychologists and social scientists with an curiosity in how behavioral insights are being utilized in economics.
The articles, which stick with Colin Camerer and George Loewenstein's creation, are by means of the editors, George A. Akerlof, Linda Babcock, Shlomo Benartzi, Vincent P. Crawford, Peter Diamond, Ernst Fehr, Robert H. Frank, Shane Frederick, Simon Gachter, David Genesove, Itzhak Gilboa, Uri Gneezy, Robert M. Hutchens, Daniel Kahneman, Jack L. Knetsch, David Laibson, Christopher Mayer, Terrance Odean, Ted O'Donoghue, Aldo Rustichini, David Schmeidler, Klaus M. Schmidt, Eldar Shafir, Hersh M. Shefrin, Chris Starmer, Richard H. Thaler, Amos Tversky, and Janet L. Yellen.
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Extra resources for Advances in Behavioral Economics (Roundtable Series in Behavioral Economics)
By adding only one or two parameters to standard models. Particular parameter values then often reduce the behavioral model to the standard one, and the behavioral model can be pitted against the standard model by estimating parameter values. Once parameter values are pinned down, the behavioral model can be applied just as widely as the standard one. Adding behavioral assumptions often does make the models less tractable. However, many of the papers represented in this volume show that it can be done.
Basic Concepts and Research Findings The field of behavioral decision research, on which behavioral economics has drawn more than any other subfield of psychology, typically classifies research into two categories: judgment and choice. Judgment research deals with the processes that people use to estimate probabilities. Choice deals with the processes people use to select among actions, taking account of any relevant judgments that they may have made. In this section, we provide a background on these two general topics to put the contributions of specific chapters into a broader context.
Most of the papers modify one or two assumptions in standard theory in the direction of greater psychological realism. Often these departures are not radical at all because they relax simplifying assumptions that are not central to the economic approach. 2 Other assumptions simply acknowledge human limits on computational We thank Steve Burks, Richard Thaler, and especially Matthew Rabin (who collaborated during most of the process) for the helpful comments. 1 Since it is a book of advances, many of the seminal articles that influenced those collected here are not included, but are noted below and are widely reprinted elsewhere.