An Introduction to Behavioral Economics by Wilkinson, Nick -- Read -- Imperial Library of Trantor

Index

Cover Title Page Copyright Contents List of Figures List of Tables Preface Acknowledgments Part I: Introduction

Chapter 1. Nature of Behavioral Economics

1.1 Behavioral economics and the standard model 2 1.2 History and evolution of behavioral economics 1.3 Relationship with other disciplines 1.4 Objectives, scope and structure 1.5 Summary 1.6 Review questions 1.7 Applications

Case 1.1 Loss aversion in monkeys Case 1.2 Money illusion Case 1.3 Altruism – the joy of giving

Chapter 2. Methodology

2.1 Theories 2.2 Evidence 2.3 Consilience 2.4 Summary 2.5 Review questions 2.6 Applications

Case 2.1 Do economists need brains? Case 2.2 Riots in the UK

Part II: Foundations

Chapter 3. Values, Preferences and Choices

3.1 The standard model 3.2 Axioms, assumptions and definitions 3.3 The evolutionary biology of utility 3.4 Broadening rationality 3.5 Types of utility 3.6 The neuroscientific basis of utility 3.7 Policy implications 3.8 Summary 3.9 Review questions 3.10 Applications

Case 3.1 Drug addiction Case 3.2 When abstention is better than moderate consumption Case 3.3 Environmental protection Case 3.4 The way the brain buys

Chapter 4. Beliefs, Heuristics and Biases

4.1 The standard model 4.2 Probability estimation 4.3 Self-evaluation bias 4.4 Projection bias 4.5 Magical beliefs 4.6 Causes of irrationality 4.7 Summary 4.8 Review questions 4.9 Review problems 4.10 Applications

Case 4.1 Fakes and honesty Case 4.2 Trading on testosterone Case 4.3 Celebrity contagion and imitative magic

Chapter 5. Decision-making under Risk and Uncertainty

5.1 Background 5.2 Conventional approaches to modifying EUT 5.3 Prospect theory 5.4 Reference points 5.5 Loss-aversion 5.6 Shape of the utility function 5.7 Decision-weighting 5.8 Criticisms of prospect theory 5.9 Recent theories and conclusions 5.10 Summary 5.11 Review questions 5.12 Review problems 5.13 Applications

Case 5.1 The endowment effect Case 5.2 Insensitivity to bad income news Case 5.3 Loss-aversion in golf

Chapter 6. Mental Accounting

6.1 Nature and components of mental accounting 6.2 Framing and editing 6.3 Budgeting and fungibility 6.4 Choice bracketing and dynamics 6.5 Policy implications 6.6 Summary 6.7 Review questions 6.8 Applications

Case 6.1 The equity premium puzzle Case 6.2 Why you can’t find a cab on a rainy day Case 6.3 Consumer spending and housing wealth

Part III: Intertemporal Choice

Chapter 7. The Discounted Utility Model

7.1 Introduction 7.2 Origins of the DUM 7.3 Features of the DUM 7.4 Methodology 7.5 Anomalies in the DUM 7.6 Summary 7.7 Review questions 7.8 Applications

Case 7.1 Empirical estimates of discount rates

Chapter 8. Alternative Intertemporal Choice Models

8.1 Time preference 8.2 Time inconsistent preferences 8.3 Hyperbolic discounting 8.4 Modifying the instantaneous utility function 8.5 More radical models 8.6 Empirical evidence 8.7 Policy implications 8.8 Summary 8.9 Review questions 8.10 Applications

Case 8.1 Price plans for gym memberships Case 8.2 The savings problem Case 8.3 The desire for rising consumption profiles

Part IV: Strategic Interaction

Chapter 9. Behavioral Game Theory

9.1 Nature of behavioral game theory 9.2 Equilibrium 9.3 Mixed strategies 9.4 Bargaining 9.5 Iterated games 9.6 Signaling 9.7 Learning 9.8 Summary 9.9 Review questions 9.10 Review problems 9.11 Applications

Case 9.1 Penalty kicking in professional soccer Case 9.2 Impasses in bargaining and self-serving bias Case 9.3 Market entry in monopoly

Chapter 10. Social Preferences

10.1 The standard model 10.2 The nature of social preferences 10.3 Factors affecting social preferences 10.4 Modeling social preferences 10.5 Inequality-aversion models 10.6 Reciprocity models 10.7 Empirical evidence 10.8 Policy implications 10.9 Summary 10.10 Review questions 10.11 Applications

Case 10.1 The Wason Test Case 10.2 Public goods and free riding Case 10.3 Sales force compensation Case 10.4 Too much virtue is a vice

Part V: Conclusion

Chapter 11. Behavioral Economics: Summary and Outlook

11.1 The agenda of behavioral economics 11.2 Criticisms of behavioral economics 11.3 Methodology 11.4 Are we really irrational? 11.5 Welfare and happiness 11.6 Problems in pursuing happiness 11.7 Policy implications 11.8 Future directions for behavioral economics 11.9 Applications

Case 11.1 The effects of brain damage on decision-making Case 11.2 Pursuing happiness Case 11.3 The bioeconomic causes of war Case 11.4 How to get children to eat vegetables

Bibliography Index