Is Behavioral Economics Doomed?: The Ordinary versus the Extraordinary (Google eBook)
David K. Levine
Open Book Publishers, Sep 1, 2012 - Business & Economics - 152 pages
It is fashionable to criticize economic theory for focusing too much on rationality and ignoring the imperfect and emotional way in which real economic decisions are reached. All of us facing the global economic crisis wonder just how rational economic men and women can be. Behavioral economics – an effort to incorporate psychological ideas into economics – has become all the rage.
This book by well-known economist David K. Levine questions the idea that behavioral economics is the answer to economic problems. It explores the successes and failures of contemporary economics both inside and outside the laboratory. It then asks whether popular behavioral theories of psychological biases are solutions to the failures. It not only provides an overview of popular behavioral theories and their history, but also gives the reader the tools for scrutinizing them.
Levine’s book is essential reading for students and teachers of economic theory and anyone interested in the psychology of economics.
What people are saying - Write a review
We haven't found any reviews in the usual places.
Akerlof Allais paradox altruistic approximate equilibrium average behavioral economics behavioral economists beliefs better called cave chance choice choose Confess contribute cooperate cost decision DellaVigna discrimination equity premium puzzle example exit expected utility theory experiment experimental explain fact fight Fudenberg and Levine gamble Game Payoffs game theory going grab Grand Central happens homo economicus idea irrational Keynes laboratory learning theory less losses lottery mainstream economics Matching Pennies matrix Nash equilibrium Neuroeconomics notion numbers offer opponent outcome participants pennies Pigouvian tax play player 2’s possible predictions Prisoner’s Dilemma game probability problem procrastination prospect theory psychologists Rabin paradox random rational expectations reason result risk aversion risk loving second player self-confirming equilibrium selfish Selten Game simple social preferences standard economic stock market subgame perfect equilibrium superstition Suppose theory of Nash things Tough Game traffic game ultimatum bargaining understand voters voting willingness