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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. It is divided into nine parts and 24
chapters: Part I is on behavioral economics of risk, uncertainty,
and ambiguity. The evidence against expected utility theory is
examined, and the behavioral response is outlined; the best
empirically supported theory is prospect theory. Part II considers
other-regarding preferences. The evidence from experimental games
on human sociality is given, followed by models and applications of
inequity aversion, intentions based reciprocity, conditional
cooperation, human virtues, and social identity. Part III is on
time discounting. It considers the evidence against the exponential
discounted utility model and describes several behavioral models
such as hyperbolic discounting, attribute based models and the
reference time theory. Part IV describes the evidence on classical
game theory and considers several models of behavioral game theory,
including level-k and cognitive hierarchy models, quantal response
equilibrium, and psychological game theory. Part V considers
behavioral models of learning that include evolutionary game
theory, classical models of learning, experience weighted
attraction model, learning direction theory, and stochastic social
dynamics. Part VI studies the role of emotions; among other topics
it considers projection bias, temptation preferences, happiness
economics, and interaction between emotions and cognition. Part VII
considers bounded rationality. The three main topics considered are
judgment heuristics and biases, mental accounting, and behavioral
finance. Part VIII considers behavioral welfare economics; the main
topics are soft paternalism, and choice-based measures of welfare.
Finally, Part IX gives an abbreviated taster course in
neuroeconomics.
This seventh volume of The Foundations of Behavioral Economic
Analysis covers a range of topics in behavioral economics. It is an
essential guide for advanced undergraduate and postgraduate
students seeking a concise and focused text that explores the key
areas of emotions in economics, behavioral welfare economics, and
neuroeconomics. This updated extract from Dhami's leading textbook
allows the reader to pursue subsections of this vast and rapidly
growing field and to tailor their reading to their specific
interests in behavioral economics.
This first volume of The Foundations of Behavioral Economic
Analysis covers the opening topic found in this definitive
introduction to the subject: the behavioral economics of risk,
uncertainty, and ambiguity. It is an essential guide for advanced
undergraduate and postgraduate students seeking a concise and
focused text on this important subject, and examines how the
decision maker chooses his optimal action in the presence of risk,
uncertainty, and ambiguity. This updated extract from Dhami's
leading textbook allows the reader to pursue subsections of this
vast and rapidly growing field and to tailor their reading to their
specific interests in behavioural economics.
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