Behavioral Economics

Behavioral economics has revolutionized economics by recognizing that people are not as cold and calculating as traditionally assumed, and has applied ideas such as mental accounting, prospect theory, present bias, inequality aversion, and learning to diverse settings. This textbook introduces key results and insights to a student audience and applies them to understand the world around us. It also considers what makes people happy and how we can nudge them to be happier.

Format: Paperback / softback
Length: 578 pages
Publication date: 22 January 2024
Publisher: Taylor & Francis Ltd

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. By recognizing that individuals possess nuanced characteristics, such as making mistakes, caring for others, and exhibiting warmth rather than purely rational behavior, behavioral economics has yielded exciting and fascinating insights that have fundamentally shifted our understanding of economic behavior.

This textbook serves as an accessible introduction to behavioral economics for students. It delves into key concepts such as mental accounting, prospect theory, present bias, inequality aversion, and learning, providing detailed explanations and real-world applications. These concepts are applied across diverse settings, including auctions, stock market crashes, charitable donations, and healthcare, highlighting the importance of behavioral economics in comprehending the world around us. Additionally, the book explores the factors that contribute to human happiness and offers strategies for promoting well-being.

In this updated edition, the coverage has been expanded and revised to include new topics and applications. The book now includes expanded discussions on fraud and cybercrime, cryptocurrency, public health messaging, and the impact of the COVID-19 pandemic. The companion website offers additional resources, including new questions and worked examples, to enhance the learning experience.

Designed for advanced undergraduate and graduate students, this book remains an ideal introduction to behavioral economics. It equips students with the tools and knowledge necessary to understand the complexities of human behavior and its implications for economic decision-making. By integrating the human element into economics, behavioral economics has opened up new avenues for research, policy, and personal well-being, contributing to a more comprehensive and empathetic understanding of the world.

Weight: 948g
Dimension: 157 x 234 x 36 (mm)
ISBN-13: 9781032414102
Edition number: 4 ed