Description
An approachable and up-to-date introduction to behavioral economics that shows how behavioral insights can augment standard economic theory to better describe how real people actually behave.
The line between standard and behavioral economics is blurring as behavioral models are increasingly incorporated into standard theory. Weaving together experimental evidence and behavioral models, this behavioral economics textbook provides an approachable, precise introduction to the field that emphasizes the iterative process of developing and testing theory to produce descriptive models that better describe how real people actually behave. Rather than learning about a laundry list of biases, students learn how to apply these insights with mathematical models that generate testable predictions. Honed by fifteen years of classroom testing, this novel book offers a modern way to teach behavioral economics.
- Highlights how behavioral insights can augment standard economic theory
- Synthesizes classic and cutting-edge research
- Incorporates experimental results
- Teaches formal behavioral models
- Requires only knowledge of algebra
- Features extensive exercises, demonstrations, and instructor resources
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