Umfang:
1 online resource (329 pages)
Ausgabe:
1st ed.
ISBN:
9780415614771
,
9781136250095
Serie:
Routledge Advanced Texts in Economics and Finance Series
Inhalt:
Standard models in economics and finance usually assume that people are rational, self-interested maximisers, effectively co-ordinated via the invisible hand of the price mechanism. Whilst these approaches produce tractable, simple models, they cannot fully capture the uncertainties and instabilities that affect everyday choices in today's complex world. Insights from the other social and behavioural sciences can help to fill the gap and behavioural economics is the subject which brings economics and finance together with psychology, neuroscience and sociology. Behavioural Economics and Finance introduces the reader to some of the key concepts and insights from this rich, inter-disciplinary approach to real-world decision-making
Anmerkung:
Cover -- Title -- Copyright -- Dedication -- Table of contents -- List of illustrations -- Acknowledgements -- PART 1 Background -- 1 Introduction -- What is behavioural economics? -- Why behavioural finance? -- A quick history of behavioural economics -- David Hume -- Adam Smith -- Jeremy Bentham -- Vilfredo Pareto -- Irving Fisher -- John Maynard Keynes -- Friedrich von Hayek -- George Katona -- Modern behavioural economics versus standard approaches -- What are the standard assumptions of neoclassical economics? -- Methodological tools -- Game theory -- Experimental economics -- Behavioural policy implications -- The structure of Behavioural Economics and Finance -- A note on mathematics -- Further reading -- Some introductions to behavioural economics -- Behavioural game theory/classical game theory -- Experimental economics -- Experimental software -- 2 Foundations: psychology -- Introduction -- Personality theory -- Freud's psychoanalytic theory -- Jung's archetypes -- Modern personality theory -- Measuring cognitive skills -- Personality tests -- Cognitive functioning -- Behavioural psychology -- Social psychology -- Social learning theory -- Social influences and social pressure -- Conclusion -- Further reading -- 3 Foundations: neuroscience and neuroeconomics -- Introduction -- What are nerves and how do they work? -- Anatomy of the brain -- Brain areas and functions -- Modularity -- Neuroscientific data and techniques -- Neuroeconomics -- What is neuroeconomics? -- Neuroeconomic data -- Neuroeconomic models and theories -- Controversies in behavioural economics and neuroeconomics -- What's next? -- Further reading -- PART 2 Behavioural microeconomic principles -- 4 Learning -- Introduction -- Belief learning -- A belief learning model -- Cheung and Friedman's experiments -- Reinforcement learning -- A reinforcement learning model
,
Erev and Roth's empirical evidence -- Experience-weighted attraction -- Experimental evidence about EWA models -- Comparative econometric evidence on EWA versus RL and BL models -- Social learning and information cascades -- Social learning theories -- Experimental tests of Bayesian herding -- Other behavioural approaches to social learning -- Social influence -- Evolutionary approaches -- Neuroeconomic analyses of learning and social influence -- Belief learning and reinforcement learning -- Reward learning and reward prediction error -- Observational learning -- Case study: social influences in real-world networks -- Social influences on household energy decisions -- Firms' reputation-building and corporate social responsibility -- A study of social influences in Indian villages -- Conclusions and policy implications -- 5 Sociality and identity -- Introduction -- Some experimental evidence -- Ultimatum games and dictator games -- Experiments with trust games -- Social preference models -- Social utility models -- Cooperation and punishment -- Altruistic punishment -- Extrinsic versus intrinsic motivations -- Evolution and social cues -- Ostracism in social networks -- Identity -- Social identity theory -- Akerlof and Kranton's identity theory -- Neuroeconomic analyses -- de Quervain and others's analysis of altruistic punishment in the trust game -- Neuroeconomic studies of empathy and trust -- Case study: social norms and environmental decision-making -- Fairness and inequity aversion -- Social norms -- Familial influence and identity -- Conclusions and policy implications -- 6 Heuristics and biases -- Introduction -- Defining rationality -- Procedural versus substantive rationality -- Ecological rationality -- Kahneman's maps of bounded rationality -- Heuristics and decision-making -- Tversky and Kahneman on heuristics and biases
,
Neuroeconomic studies of empathy -- Case study: emotional trading -- Conclusions and policy implications -- 9 Time and plans -- Introduction -- Exponential discount functions -- Individual differences with exponential discounting -- Behavioural discount functions -- Behavioural anomalies -- Animal models -- Behavioural discounting models -- Time inconsistency in the real world -- Behavioural life-cycle models -- Limitations of the Angeletos and others behavioural life-cycle model -- Temporal mental accounting and bracketing -- Bracketing in labour supply -- Neuroeconomic analyses -- McClure, Laibson, Loewenstein and Cohen's fMRI evidence -- Glimcher, Kable and Louie's analysis of delayed choices -- Case study: intertemporal planning and the environment -- Behavioural discount functions for environmental decision-making -- Goals, planning and feedback -- Conclusions and policy implications -- 10 Bad habits -- Introduction -- Rational addiction models -- Becker, Grossman and Murphy's model -- Becker and Murphy's empirical evidence -- Other econometric studies of addiction -- Rational addiction models: summary of evidence and implications -- Cue-triggered consumption -- Laibson's cue theory of consumption -- Bernheim and Rangel on hot-cold systems -- Cues in natural addiction models -- Visceral factors -- Neuroeconomic analyses -- Naqvi and others's lesion patient study -- Post-mortem studies -- Case study: healthy lifestyles -- Bad health habits: not going to the gym -- Conclusions and policy implications -- PART 3 Macroeconomics and financial markets -- 11 Financial instability -- Introduction -- Herding, learning and social influences -- Social learning -- Beauty contests -- Reputation -- Heuristics, biases and prospect theory -- Over-reactions and under-reactions -- Diversification biases and the availability heuristic -- Momentum trading
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Prospect theory, loss aversion and ambiguity aversion -- Time and instability -- Moods, emotions and personality -- An emotional finance model -- Akerlof and Shiller's animal spirits -- Neuroeconomic evidence -- Risk, impulsivity and fear -- Financial herding and social emotions -- Conclusions and policy implications -- 12 Behavioural macroeconomics, happiness and wellbeing -- Introduction -- Keynes's psychology of the macroeconomy -- Keynes's fundamental psychological laws -- Expectations and the state of confidence -- Macroeconomic conventions -- Entrepreneurial animal spirits -- A behavioural analysis of macroeconomic interactions -- Akerlof and Shiller's animal spirits -- Macroeconomic actors -- Investment -- Consumption and saving -- Labour markets and unemployment -- Government policy-making -- Happiness -- Utility and happiness -- Wellbeing -- Measuring wellbeing -- Wellbeing and the environment -- Neuroeconomic studies of happiness -- Conclusions and policy implications -- Bibliography -- Index
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Representativeness -- Availability heuristic -- Anchoring and adjustment -- Loss aversion, endowment effects and status quo bias -- Biases and heuristics in expert judgment -- Choice overload and cognitive dissonance -- Choice overload -- Cognitive balance and cognitive dissonance -- Neuroeconomic analyses -- Case study: heuristics and biases in real-world decision-making -- Online heuristics and biases -- Heuristics, biases and folk wisdom in environmental decision-making -- Conclusions and policy implications -- 7 Prospects and regrets -- Introduction -- Behavioural paradoxes -- St Petersburg paradox -- Allais paradox -- Ellsberg paradox -- Monty Hall/three prisoners paradox -- Expected utility theory -- Bar-Hillel and Falk's solution to the three prisoners problem -- Kahneman and Tversky's critique of expected utility theory -- Certainty effect -- Reflection effect -- Isolation effect -- Kahneman and Tversky's prospect theory -- Editing phase -- Evaluation -- The value function -- Loss aversion -- The weighting function -- Evidence from game shows -- Cumulative prospect theory -- Mental accounting and framing -- Mental accounting -- Framing and bracketing -- Regret theory -- Neuroeconomic analyses -- Case study: buying insurance -- Conclusions and policy implications -- 8 Personality, moods and emotions -- Introduction -- Personality and individual differences -- Personality and cognition -- Personality and preference parameters -- Individual differences and human capital investment -- Moods -- Moods and weather patterns -- Social mood in socionomic analyses -- Emotions and affect -- Emotions and heuristics -- The somatic marker hypothesis -- Basic instincts and visceral factors -- Social emotions -- Cognition and emotion in dual-system models -- Neuroeconomic analyses -- Sanfey and others's fMRI study of social emotions
Weitere Ausg.:
Print version Baddeley, Michelle Behavioural Economics and Finance London : Taylor & Francis Group,c2012 ISBN 9780415614771
Sprache:
Englisch
Schlagwort(e):
Electronic books
URL:
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