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9780415614788

Behavioural Economics and Finance

by ;
  • ISBN13:

    9780415614788

  • ISBN10:

    0415614783

  • Edition: 1st
  • Format: Nonspecific Binding
  • Copyright: 2012-10-17
  • Publisher: Routledge
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Summary

Modern mainstream economics has been dominated by the use of mathematical and statistical tools. While these tools have done much to focus our understanding they tend to reflect only an idealized version of reality. In the real world, many people have limited information and/or limited decision-making capacity and so actual behaviour often strays very far beyond the confines of mathematical economics.Boundaries to mainstream economics have been extended by recognising the limits imposed by uncertainty and imperfect information but, in recent years there has developed a growing feeling that economics has lessons to learn from other disciplines too.Behavioural economics represents a cornerstone of this growing interest in multidisciplinary approaches to economics and finance, bringing together as it does, ideas from economics, psychology, sociology and neuroscience to develop a deeper insight into people's economic and financial decision-making. This book describes the principle tenets of the discipline and assesses the implications of behavioural economics for future research and real-world policy making.

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