• Corpus ID: 16212014

Foundations of Behavioral and Experimental Economics :

@inproceedings{Kahneman2002FoundationsOB,
  title={Foundations of Behavioral and Experimental Economics :},
  author={Daniel Kahneman and Vernon L. Smith},
  year={2002}
}
Until recently, economics was widely regarded as a non-experimental science that had to rely on observation of real-world economies rather than controlled laboratory experiments. Many commentators also found restrictive the common assumption of a homo oeconomicus motivated by self-interest and capable of making rational decisions. But research in economics has taken off in new directions. A large and growing body of scientific work is now devoted to the empirical testing and modification of… 

Figures from this paper

Microeconomics: Optimization, Experiments, and Behavior

The most innovative feature of the book is its extensive coverage of recent research in behavioral and experimental economics. This research not only documents behavior inconsistent with some

“Economics meets the other sciences: interpreting new economic programs and proposing new theories for Institutional Cognitive Economics”

This paper provides an interpretative key of the mechanisms underlying the emergence of several new economic programs working on the borders between economic theory and other social sciences. To this

Choice Under Uncertainty and Ambiguity: An Empirical Inquiry of a Behavioral Economic Experiment Applied to COVID-19.

Results from a behavioral economic laboratory experiment are used to enhance our understanding of public health decisions made during the COVID-19 pandemic. The identification of systematic biases

The Study of Consumer Stock Market Behaviour by Consequence of Prospect Theory

  • Varun Chotia
  • Business
    International Journal of Applied Behavioral Economics
  • 2022
This study analyses the application of prospect theory concepts to understand stock market fluctuations. Prospect theory is the most frequently encountered alternative to utility theory when the

Decision making in Economics -- a behavioral approach

We review economic research regarding the decision making processes of individuals in economics, with a particular focus on papers which tried analyzing factors that affect decision making with the

The Experimentation of Bounded Rationality Behavior in Individual Decision-making

Prospect theory has challenged the decision-making principle of expected utility maximization which based on rationality .According to the prospect theory, there are some bounded rationality such as

Disclosure Manipulation and Elasticity of Intertemporal Substitution

This paper is concerned with the effect of disclosure manipulation in earnings reporting on the stock market and the elasticity of intertemporal substitution (EIS) in consumption. We try to quantify

Crowdsensing From the Perspective of Behavioral Economics: An Incentive Mechanism Based on Mental Accounting

An incentive mechanism called the MA auction incentive mechanism (MAAIM) is proposed, based on reference dependence, coupled with sensitivity decline, that improves the number of users participating in sensing tasks, the utility of the sensing platform, and the quality of data collected by users.

Determining the Factors Affecting Individual Investors’ Behaviours

Behavioral finance is precisely non-rational behavior of market investors. Behavioral finance theory shows that investors make investment decisions rationally, by intermittent change from the past

BEHAVIOURAL FINANCE: AN INTROSPECTION OF INVESTORS PSYCHOLOGY

Purpose: Investors always try to make rational decision while analyzing and interpreting information collected from various sources for different investment avenues to arrive at an optimal investment

References

SHOWING 1-10 OF 68 REFERENCES

psychology and economics

Several developments have joined to stimulate economists to think about issues that have been on the forefront of psychological research. Firstly, the information revolution in economics has focused

Rational choice and the structure of the environment.

  • H. Simon
  • Economics
    Psychological review
  • 1956
A comparative examination of the models of adaptive behavior employed in psychology and economics shows that in almost all respects the latter postulate a much greater complexity in the choice mechanisms, and a much larger capacity in the organism for obtaining information and performing computations than do the former.

Rational Choice: The Contrast between Economics and Psychology

  • V. Smith
  • Economics
    Journal of Political Economy
  • 1991
Rational Choice--the published record of a conference on economics and psychology--frames the issues as a contest between economic theory and the falsifying evidence from psychology. According to a

Fairness and the Assumptions of Economics

The advantages and disadvantages of expanding the standard economic model by more realistic behavioral assumptions have received much attention. The issue raised in this article is whether it is

An Experimental Imperfect Market

ITi s a commonplace that, in its choice of method, economics is limited by the fact that resort cannot be had to the laboratory techniques of the natural sciences. On the one hand, the data of real

An Experimental Examination of Two Exchange Institutions

Economists have shown increasing interest in the analysis of information and organization in decentralized price adjustment processes. This interest is most frequently manifested at the theoretical

Bargaining and market behavior - essays in experimental economics

Part I: Rational choice: the contrast between economics and psychology, and experimental tests of the endowment effect, and an experimental examination of the Walrasian Tatonnement mechanism.

Theory of Games and Economic Behavior

THIS book is based on the theory that the economic man attempts to maximize his share of the world's goods and services in the same way that a participant in a game involving many players attempts to

Papers in experimental economics

This collection of his papers from 1962 to 1990 surveys key developments in the field from early attempts to study economic behaviour in now classic double oral auction markets through recent studies of industrial organization and decision making.

Experimental Tests of the Endowment Effect and the Coase Theorem

Contrary to theoretical expectations, measures of willingness to accept greatly exceed measures of willingness to pay. This paper reports several experiments that demonstrate that this "endowment
...