Description
Principles of Behavioral Economics, written by an acknowledged leader in the field, provides a comprehensive introduction to one of the most exciting areas of modern economics. It demonstrates how models of economic theory can be enriched by using interdisciplinary insights from psychology, sociology, evolutionary biology, and neuroscience to build the basis for a more empirically supported set of economic principles. Unique in its level of rigor and lucidity, the book highlights the important link between theoretical and empirical economics by demonstrating the usefulness of a range of data sources such as observational data, lab data, survey data, and neuroeconomic data. This field-defining textbook argues that behavioral economics is not just a supplement to mainstream economics. Taking behavioral economics seriously requires a total rethink, and eventual transformation, of every area of economics.
Table of Contents
Part I. Behavioral Decision Theory: 1. The traditional approach to decision making under risk and subjective uncertainty; 2. Modern approaches to decision making under risk and subjective uncertainty; Part II. Other Regarding Preferences: 3. Evidence on human pro-sociality, morality, and ethics; 4. Theory and applications of pro-social behaviour; Part III. Behavioral Time Discounting: 5. The traditional approach to time preferences; 6. Behavioral approaches to time preferences; Part IV. Behavioral Game Theory; 7. Introduction to behavioral game theory; 8. Topics in behavioral game theory; Part V. Bounded Rationality: 9. Bounded rationality I: judgement heuristics; 10. Bounded rationality II: topics in bounded rationality; Part VI. Further Topics in Behavioral Economics: 11. A smorgasbord of topics in behavioral economics; 12. Behavioral welfare economics.
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