Behavioral Economics

Behavioral economics has revolutionized economics by recognizing that people are not as cold and calculating as traditionally assumed, and that they make mistakes, care about others, and are generally not as cold and calculating as economists have traditionally assumed. This textbook introduces key results and insights of behavioral economics to a student audience, explaining ideas such as mental accounting, prospect theory, present bias, inequality aversion, and learning in diverse settings. It also considers what makes people happy and how we can potentially nudge them to be happier. The companion website is updated with new questions and worked examples.

\n Format: Paperback / softback
\n Length: 556 pages
\n Publication date: 23 January 2018
\n Publisher: Taylor & Francis Ltd
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Behavioral economics has undergone a remarkable transformation in recent decades, reclaiming the human element and challenging the traditional notion of economics as a cold and calculating discipline. This groundbreaking shift has led to exciting and fascinating discoveries that have fundamentally changed our understanding of economic behavior.

In this comprehensive textbook, we delve into the core principles and insights of behavioral economics, providing students with a comprehensive introduction to this field. We explore concepts such as mental accounting, prospect theory, present bias, inequality aversion, and learning, explaining them in detail and applying them to diverse real-world scenarios. From auctions to stock market crashes, charitable donations to health care, behavioral economics sheds light on why people behave the way they do and offers valuable insights for policymakers and individuals alike.

Furthermore, this textbook goes beyond the theoretical realm and explores the factors that contribute to human happiness. We examine the role of social norms, incentives, and cognitive biases in shaping our behavior and offer practical strategies for promoting well-being. By understanding the underlying motivations and decision-making processes, we can design policies and interventions that promote social welfare and individual prosperity.

This new edition of the textbook has been extensively revised and updated to reflect the latest developments in the field. It includes expanded coverage of contract theory, bargaining in the family, time and risk, and stochastic reference points, ensuring that readers are well-prepared for the fast-paced world of behavioral economics. The companion website offers a wealth of additional resources, including new questions, worked examples, and discussion forums, to further enhance the learning experience.

Whether you are an advanced undergraduate or graduate student seeking to expand your knowledge of behavioral economics, this textbook is an ideal introduction. It provides a clear and accessible framework for understanding the complex interplay between psychology, economics, and decision-making, equipping you with the tools to navigate the world with a deeper understanding of human behavior and its implications.

\n Weight: 870g\n
Dimension: 233 x 156 x 32 (mm)\n
ISBN-13: 9781138097124\n
Edition number: 3 New edition\n