Modern Developments in Behavioral Economics: Social Science Perspectives on Choice and Decision Making
This book examines the field of behavioral economics and provides insights into the following questions: ? Does utility bring happiness?? How do emotions and personal perspectives color our economic decisions?? How do altruism, trust, fairness and justice come into play in game theory?? Why are some organizations so successful in implementing their objectives?? Can advances in neuroeconomics unlock the secrets of how decisions are made?The book looks at decision making and behavior from the point of view of (i) individual behavior and choice; (ii) group and interactive choice; and (iii) collective choices and decision making. In particular, it covers the following aspects: instances when bounded rationality leads to decisions inconsistent with standard economic assumptions; risk and the processes by which investors and consumers make decisions; altruistic and cooperative behavior as alternatives to competition; game theory as a way to explore motives of cooperation versus competition; the determinants of happiness and the relationship between utility and well-being; the concept of social capital, including motivations for charity and being a responsible citizen; how trust and fairness relate to economic actions and the motivation to cooperate rather than compete; behavior such as crime, corruption and bribery from ethical, social and economic viewpoints; and, finally, the decision making process of collective choice and how societies develop rules for governing themselves.This is the first book to bridge economics, psychology, sociology and political sciences and explain the nuanced subtleties of decision making.
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2 The Standard Model of the Household Microfoundations of Consumer Behavior
3 Bounded Rationality and Decision Making
4 Cooperation and Defection in a Game Theoretic Context
6 Utility and Happiness
7 Social Capital Personal Capital and Fairness
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altruism analysis argues Asian behavior benefits bounded rationality brain bribery Chapter charity choice club collective action competition consumer consumption context cooperation costs countries decision defect developed dictator game discount discussed economists effect efficiency emotional endowment effect ethical evidence example expected utility experience factors fairness free rider problem free riding game theory groups growth happiness higher hyperbolic discounting impact important income distribution increase indifference curve individual interaction interest Journal of Economic justice Kahneman less Loewenstein loss loss aversion marginal utility ment mental accounting motives Nash equilibrium negative Neuroeconomics Nozick option outcome payoff people’s percent person players political preferences principle Prisoner’s Dilemma problem Prospect Theory Psychological reduce relationship result Review risk averse role self-interest situations social capital society strategy studies subjective well-being suggests Thaler tion trust ultimatum game University Press York