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Full Description
This textbook takes a new approach to economics by taking into account behavioral sciences and ethics. The basics of institutional economics are the starting point of the book, which are combined with insights from business ethics and behavioral science. It analyzes human behavior in order to discover incentives for economic agents to behave in a welfare-maximizing way, and analyzes the impact of human behavior and morality on economic systems, markets and politics. This textbook draws from new research results from behavioral economics, as well as from other disciplines, such as psychology and sociology, thus leading to new conclusions for economic science. The book sheds light on how people behave and how such behavior can be guided towards moral welfare for everyone. Furthermore, the reader is introduced to behavioral games, and to how these can be used to study economic behavior. Each chapter contains a summary on behavioral science findings as well as one on ethical findings. This book is a must read for advanced students in economics and political science but can also be of use to researchers of economics, as well as policymakers and business executives due to its focus on applications.
Contents
1. Goals of Economic Policy and Weaknesses in the Approach of Economics.- 2. The Image of Man.- 3. Market and Competition.- 4. Economic Systems.- 5. Market Failure and Economic Policy.- 6. Traits of the Political System.- 7. Financial Markets after the Financial Crisis.- 8. Business Cycles Theory and Policy.- 9. Final Conclusion.- 10. Solutions to the Exercises.
