Advances in Behavioral Economics

by Camerer, Colin F.; Loewenstein, George; Rabin, Matthew

• ISBN13: 9781400829118
• ISBN10: 1400829119
• Copyright: 2008-06-01
• Publisher: Princeton Univ Pr

Summary

Twenty years ago, behavioral economics did not exist as a field. Most economists were deeply skeptical--even antagonistic--toward the idea of importing insights from psychology into their field. Today, behavioral economics has become virtually mainstream. It is well represented in prominent journals and top economics departments, and behavioral economists, including several contributors to this volume, have garnered some of the most prestigious awards in the profession. This book assembles the most important papers on behavioral economics published since around 1990. Among the 25 articles are many that update and extend earlier foundational contributions, as well as cutting-edge papers that break new theoretical and empirical ground. Advances in Behavioral Economicswill serve as the definitive one-volume resource for those who want to familiarize themselves with the new field or keep up-to-date with the latest developments. It will not only be a core text for students, but will be consulted widely by professional economists, as well as psychologists and social scientists with an interest in how behavioral insights are being applied in economics. The articles, which follow Colin Camerer and George Loewenstein's introduction, are by the editors, George A. Akerlof, Linda Babcock, Shlomo Benartzi, Vincent P. Crawford, Peter Diamond, Ernst Fehr, Robert H. Frank, Shane Frederick, Simon Gauml;chter, David Genesove, Itzhak Gilboa, Uri Gneezy, Robert M. Hutchens, Daniel Kahneman, Jack L. Knetsch, David Laibson, Christopher Mayer, Terrance Odean, Ted O'Donoghue, Aldo Rustichini, David Schmeidler, Klaus M. Schmidt, Eldar Shafir, Hersh M. Shefrin, Chris Starmer, Richard H. Thaler, Amos Tversky, and Janet L. Yellen.

Table of Contents

List of Contributors	p. xi
Preface	p. xxi
Acknowledgments	p. xxv
Introduction	p. 1
Behavioral Economics: Past, Present, Future	p. 3
Basic Topics	p. 53
Reference-Dependence And Loss-Aversion
Experimental Tests of the Endowment Effect and the Coase Theorem	p. 55
Mental Accounting Matters	p. 75
Preferences Over Risky And Uncertain Outcomes
Developments in Nonexpected-Utility Theory: The Hunt for a Descriptive Theory of Choice under Risk	p. 104
Prospect Theory in the Wild: Evidence from the Field	p. 148
Intertemporal Choice
Time Discounting and Time Preference: A Critical Review	p. 162
Doing It Now or Later	p. 223
Fairness And Social Preferences
Fairness as a Constraint on Profit Seeking: Entitlements in the Market	p. 252
A Theory of Fairness, Competition, and Cooperation	p. 271
Incorporating Fairness into Game Theory and Economics	p. 297
Explaining Bargaining Impasse: The Role of Self-Serving Biases	p. 326
Game Theory
Theory and Experiment in the Analysis of Strategic Interaction	p. 344
Behavioral Game Theory: Predicting Human Behavior in Strategic Situations	p. 374
Applications	p. 393
Macroeconomics And Savings
Mental Accounting, Saving, and Self-Control	p. 395
Golden Eggs and Hyperbolic Discounting	p. 429
The Fair Wage-Effort Hypothesis and Unemployment	p. 458
Money Illusion	p. 483
Labor Economics
Fairness and Retaliation: The Economics of Reciprocity	p. 510
Labor Supply of New York City Cab Drivers: One Day at a Time	p. 533
Wages, Seniority, and the Demand for Rising Consumption Profiles	p. 548
Incentives, Punishment, and Behavior	p. 572
Finance
Myopic Loss-Aversion and the Equity Premium Puzzle	p. 590
Do Investors Trade Too Much?	p. 606
Loss-Aversion and Seller Behavior: Evidence from the Housing Market	p. 633
New Foundations	p. 657
Case-Based Decision Theory	p. 659
Out of Control: Visceral Influences on Behavior	p. 689
Index	p. 725
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