This is the first definitive introduction to behavioral economics aimed at advanced undergraduate and postgraduate students. Authoritative, cutting edge, yet accessible, it guides the reader through theory and evidence, providing engaging and relevant applications throughout.
First graduate and advanced undergraduate treatment of behavioral economics
Deals with the theory, evidence, and applications
Comprehensive self-contained coverage of the material. New technical concepts are introduced gradually and sometimes in purpose-written Appendices
Each part has a set of exercises that test understanding and challenge the reader to go beyond the material in the text
Includes detailed introductions to each Part
Preface
Introduction
Part I: Behavioral Economics of Risk, Uncertainty, and Ambiguity
Introduction to Part I
1: The Evidence on Human Choice under Risk and Uncertainty
2: Behavioral Models of Decision Making
3: Applications of Behavioral Decision Theory
4: Human Behavior Under Ambiguity
Part II: Other-Regarding Preferences
Introduction to Part II
5: The Evidence on Human Sociality
6: Models of Other-Regarding Preferences
7: Human Morality and Social Identity
8: Incentives and Other-Regarding Preferences
Exercises
Part III: Behavioral Time Discounting
Introduction to Part III
9: The Evidence on Temporal Human Choice
10: Behavioral Models of Time Discounting
11: Applications of Present Biased Preferences
Exercises
Part IV: Behavioral Game Theory
Introduction to Part IV
12: The Evidence on Strategic Human Choice
13: Models of Behavioral Game Theory
Exercises
Part V: Behavioral Models of Learning
Introduction to Part V
14: Evolutionary Game Theory
15: Models of Learning
16: Stochastic Social Dynamics
Appendices and Exercises
Part VI: Emotions
Introduction to Part VI
17: Emotions and Human Behavior
18: Interaction Between Emotions and Cognition
Exercises
Part VII: Bounded Rationality
Introduction to Part VII
19: Judgment Heuristics
20: Mental Accounting
21: Bounded Rationality in Financial Markets
Exercises
Part VIII: Behavioral Welfare Economics
Introduction to Part VIII
22: Behavioral Welfare Economics
Exercises
Part IX: Neuroeconomics
Introduction to Part IX
23: Neuroeconomics
Appendix on Game Theory
Introduction
Normal form games
A basic taxonomy of some normal form games
Two person zero sum games
Selection criteria among Nash equilibria: Payoff dominance and Risk Dominance
Extensive form games
Games of incomplete information
Correlated equilibrium