It is fashionable to criticize economic theory for focusing too
much on rationality and ignoring the imperfect and emotional way in
which real economic decisions are reached. All of us facing the
global economic crisis wonder just how rational economic men and
women can be. Behavioral economics - an effort to incorporate
psychological ideas into economics - has become all the rage. In
this book, David K. Levine questions the idea that behavioral
economics is the answer to economic problems. He explores the
successes and failures of contemporary economics both inside and
outside the laboratory, and asks whether popular behavioral
theories of psychological biases are solutions to the failures. The
book not only provides an overview of popular behavioral theories
and their history, but also gives the reader the tools for
scrutinizing them. Is Behavioral Economics Doomed? is essential
reading for students and teachers of economic theory and anyone
interested in the psychology of economics.
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