Introduction to Behavioral Economics

Höfundur: David R. Just (Útgáfa: 1)
Introduction to Behavioral Economics

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With the rise of behavioral economics courses undergraduates are seeking more formal training and instruction in behavioral economics topics. Introduction to Behavioral Economics covers all the ways consumers and other economic agents behave in an irrational manner, and prepares readers to make rational economic choices. This book is focused on the broad principles of behavior, which are illustrated using real-world examples, examples from experimental literature, as well as experiential examples.

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Útgefandi
Wiley Global Education US
ISBN
9781118805848
Print ISBN
9780470596227
Format
Page Fidelity (PDF)
Útgáfa
1
Höfundar
David R. Just
Tungumál
English
Útgefið
2013-11-25
Prent takmörkun á líftíma
100
Prent takmörkun
10
Afritunar takmörkun
2

Kaflar

  • Title Page
  • Copyright
  • Brief Contents
  • Contents
  • Preface
  • Who Should Use this Book
  • Philosophy
  • A Short Word on Experiments
  • Acknowledgments
  • Chapter 1: Rationality, Irrationality, and Rationalization
  • Rational Choice Theory and Rational Modeling
  • Rationality and Demand Curves
  • Bounded Rationality and Model Types
  • Special Relationship between Behavioral Economics and Experimental Economics
  • Biographical Note: Herbert A. Simon
  • Thought Questions
  • References
  • Advanced Concept: Deriving Demand Curves
  • Part I: Consumer Purchasing Decisions
  • Chapter 2: Transaction Utility and Consumer Pricing
  • Rational Choice with Fixed and Marginal Costs
  • Fixed versus Sunk Costs
  • The Sunk Cost Fallacy
  • Theory and Reactions to Sunk Cost
  • History and Notes
  • Rational Explanations for the Sunk Cost Fallacy
  • Transaction Utility and Flat-Rate Bias
  • Procedural Explanations for Flat-Rate Bias
  • Rational Explanations for Flat-Rate Bias
  • History and Notes
  • Transaction Utility and Consumer Preferences in Reference
  • Theory and Reference-Dependent Preferences
  • Rational Explanations for Context-Dependent Preferences
  • Biographical Note: Richard H. Thaler
  • Thought Questions
  • References
  • Advanced Concept: Fixed Costs and Rational Choice
  • Chapter 3: Mental Accounting
  • Rational Choice with Income from Varying Sources
  • The Theory of Mental Accounting
  • Budgeting and Consumption Bundles
  • Accounts, Integrating, or Segregating
  • Payment Decoupling, Prepurchase, and Credit Card Purchases
  • Investments and Opening and Closing Accounts
  • Reference Points and Indifference Curves
  • Rational Choice, Temptation and Gifts versus Cash
  • Budgets, Accounts, Temptation, and Gifts
  • Rational Choice over Time
  • Rational Explanations for Source-Based Consumption and Application
  • Biographical Note: George F. Loewenstein
  • Thought Questions
  • References
  • Chapter 4: Status Quo Bias and Default Options
  • Rational Choice and Default Options
  • Preference Formation, Framing, and the Default Option
  • Rational Explanations of the Status Quo Bias
  • History and Notes
  • Reference Points, Indifference Curves, and the Consumer Problem
  • An Evolutionary Explanation for Loss Aversion
  • Rational Choice and Getting and Giving Up Goods
  • Loss Aversion and the Endowment Effect
  • Rational Explanations for the Endowment Effect
  • History and Notes
  • Biographical Note: Amos N. Tversky
  • Thought Questions
  • References
  • Advanced Concept: The Shape of Indifference Curves with Constant Loss Aversion
  • Chapter 5: The Winner's Curse and Auction Behavior
  • Rational Bidding in Auctions
  • Procedural Explanations for Overbidding
  • Levels of Rationality
  • Bidding Heuristics and Transparency
  • Rational Bidding under Dutch and First-Price Auctions
  • History and Notes
  • Rational Prices in English, Dutch, and First-Price Auctions
  • Auction with Uncertainty
  • Rational Bidding under Uncertainty
  • The Winner's Curse and Anchoring and Adjusting
  • History and Notes
  • Rational Explanations for the Winner's Curse
  • Biographical Note: Matthew Rabin
  • Thought Questions
  • References
  • Advanced Concept: Bayesian Nash Equilibrium and Bidding under Uncertainty
  • Part 2: Information and Uncertainty
  • Chapter 6: Bracketing Decisions
  • Multiple Rational Choice with Certainty and Uncertainty
  • The Portfolio Problem
  • Narrow versus Broad Bracketing
  • Bracketing the Portfolio Problem
  • More than the Sum of Its Parts
  • The Utility Function and Risk Aversion
  • Bracketing and Variety
  • Rational Bracketing for Variety
  • Changing Preferences, Adding Up, and Choice Bracketing
  • Addiction and Melioration
  • Narrow Bracketing and Motivation
  • Behavioral Bracketing
  • History and Notes
  • Rational Explanations for Bracketing Behavior
  • Biographical Note: Drazen Prelec
  • Thought Questions
  • References
  • Advanced Concept: The Portfolio Problem
  • Advanced Concept: Bracketing the Portfolio Problem
  • Chapter 7: Representativeness and Availability
  • Statistical Inference and Information
  • Calibration Exercises
  • Representativeness
  • Conjunction Bias
  • The Law of Small Numbers
  • Conservatism versus Representativeness
  • Availability Heuristic
  • Bias, Bigotry, and Availability
  • History and Notes
  • Biographical Note: Daniel Kahneman
  • Thought Questions
  • References
  • Chapter 8: Confirmation and Overconfidence
  • Rational Information Search
  • Confirmation Bias
  • Risk Aversion and Production
  • Overconfidence
  • Self-Serving Bias
  • Is Bad Information Bad?
  • History and Notes
  • Biographical Note: Colin F. Camerer
  • Thought Questions
  • References
  • Chapter 9: Decision under Risk and Uncertainty
  • Rational Decision under Risk
  • Modeling Intransitive Preferences: Regret and Similarity
  • Independence and Rational Decision under Risk
  • Allowing Violations of Independence
  • The Shape of Indifference Curves
  • Evidence on the Shape of Probability Weights
  • Probability Weights without Preferences for the Inferior
  • Practical Implications of Violations of Expected Utility
  • What to Do When You Don't Know What Can Happen
  • History and Notes
  • Biographical Note: Maurice Felix Charles Allais
  • Thought Questions
  • References
  • Advanced Concept: The Continuity Axiom
  • Chapter 10: Prospect Theory and Decision under Risk or Uncertainty
  • Risk Aversion, Risk Loving, and Loss Aversion
  • Prospect Theory
  • Prospect Theory and Indifference Curves
  • Does Prospect Theory Solve the Whole Problem?
  • Prospect Theory and Risk Aversion in Small Gambles
  • History and Notes
  • Biographical Note: Peter P. Wakker
  • Thought Questions
  • References
  • Part 3: Time Discounting and the Long and Short Run
  • Chapter 11: Disagreeing with Ourselves: Projection and Hindsight Biases
  • The Standard Models of Intertemporal Choice
  • Making Decisions for Our Future Self
  • Projection Bias and Addiction
  • The Role of Emotions and Visceral Factors in Choice
  • Modeling the Hot–Cold Empathy Gap
  • Hindsight Bias and the Curse of Knowledge
  • History and Notes
  • Biographical Note: Dan Ariely
  • Thought Questions
  • References
  • Chapter 12: Naïve Procrastination
  • The Fully Additive Model
  • Discounting in Continuous Time
  • Why Would Discounting Be Stable?
  • Naïve Hyperbolic Discounting
  • Naïve Quasi-Hyperbolic Discounting
  • The Common Difference Effect
  • The Absolute Magnitude Effect
  • Discounting with a Prospect-Theory Value Function
  • History and Notes
  • Biographical Note: Robert H. Strotz
  • Thought Questions
  • References
  • Chapter 13: Committing and Uncommitting
  • Rationality and the Possibility of Committing
  • Commitment under Time Inconsistency
  • Choosing When to Do It
  • Of Sophisticates and Naïfs
  • Uncommitting
  • History and Notes
  • Biographical Note: David Laibson
  • Thought Questions
  • References
  • Advanced Concept: The Continuous Choice Problem with Backward Induction
  • Part 4: Social Preferences
  • Chapter 14: Selfishness and Altruism
  • Rationality and Altruism
  • Rationally Selfless?
  • Selfishly Selfless
  • Public Goods Provision and Altruistic Behavior
  • History and Notes
  • Biographical Note: Robert H. Frank
  • Thought Questions
  • References
  • Chapter 15: Fairness and Psychological Games
  • Inequity Aversion
  • Holding Firms Accountable in a Competitive Marketplace
  • Fairness
  • Kindness Functions
  • Psychological Games
  • History and Notes
  • Biographical Note: Ernst Fehr
  • Thought Questions
  • References
  • Chapter 16: Trust and Reciprocity
  • Of Trust and Trustworthiness
  • Trust in the Marketplace
  • Trust and Distrust
  • Reciprocity
  • History and Notes
  • Biographical Note: Paul Slovic
  • Thought Questions
  • References
  • Glossary
  • Index