:Contemporary behavioural economics has documented common failures of reasoning that apparently make possible policies that benefit individuals by contravening or correcting their judgements. These policies appear to be paternalistic, even though a traditional view would deny that they are paternalistic on the grounds that policies such as nudges do not restrict individual liberty. It appears to many that a new definition of paternalism that takes its cue from behavioural economics is needed. Furthermore, if one revises the (...) definition of paternalism, one must revisit traditional views concerning whether paternalist policies are wise. In Government Paternalism, Julian Le Grand and Bill New make a valuable start, although some corrections are needed. This essay provides a general setting for revising the definition of paternalism and suggests a revised definition of paternalism. (shrink)

The paper gives an overview of primate research and the economic-ethical 'lessons' we can derive from it. In particular, it examines the complex, multi-faceted and partially conflicting nature of (non-) human primates. Our closest living relatives, the chimpanzees and bonobos, apparently walk on two legs: a selfish and a groupish leg. Given evolutionary continuity and gradualism between monkeys, apes and humans, human primates seem to be bipolar apes as well. They, too, tend to display a dual structure: there seems to (...) be a pro-social and a self-interested side to our species and a bipolar tension seems to exist between competition and cooperation respectively between self-interest and the common good. We are apparently at the same time Homines oeconomici and Homines culturali. Our inner ape tries to combine self-interested and common good motives. Based on de Waal's Russian doll model, the essay investigates the evolutionary origins of morality and 'eusociality'. With the help of selected case studies stemming from behavioural sciences/economics, the paper illustrates examples of empathy, altruism, reciprocal fairness, pro-social and other-regarding preferences, inequity aversion and altruistic punishment in (non-)human primates. Beside this selfless and groupish side, the paper also reflects on the self-interest and egoistic nature of (non-)human primates and the behavioural and cognitive differences between monkeys, apes and humans. (shrink)

Since its inception in the late 1970s, behavioural economics has gone from being an outlier to a widely recognized yet still contested subset of the economic sciences. One of the basic arguments in behavioural economics is that a more realistic psychology ought to inform economic theories. While the history of behavioural economics is often portrayed and articulated as spanning no more than a few decades, the practice of utilizing ideas from psychology to rethink theories (...) of economics is over a century old. In the first three decades of the 20th century, several mostly American economists made efforts to refine fundamental economic assumptions by introducing ideas from psychology into economic thinking. In an echo of contemporary discussions in behavioural economics, the ambition of these psychology-keen economists was to strengthen the empirical accuracy of the fundamental assumptions of economic theory. In this article, we trace, examine, and discuss arguments for and against complementing economic theorizing with insights from psychology, as found in economic literature published between 1900 and 1930. The historical analysis sheds light on issues and challenges associated with the endeavour to improve one discipline’s theories by introducing ideas from another, and we argue that these are issues and challenges that behavioural economists continue to face today. (shrink)

Traditionally economists have based their economic predictions on the assumption that humans are super-rational creatures, using the information we are given efficiently and generally making selfish decisions that work well for us as individuals. Economists also assume that we're doing the very best we can possibly do - not only for today, but over our whole lifetimes too. But increasingly the study of behavioural economics is revealing that our lives are not that simple. Instead, our decisions are complicated (...) by our own psychology. Each of us makes mistakes every day. We don't always know what's best for us and, even if we do, we might not have the self-control to deliver on our best intentions. We struggle to stay on diets, to get enough exercise and to manage our money. We misjudge risky situations. We are prone to herding: sometimes peer pressure leads us blindly to copy others around us; other times copying others helps us to learn quickly about new, unfamiliar situations. This Very Short Introduction explores the reasons why we make irrational decisions; how we decide quickly; why we make mistakes in risky situations; our tendency to procrastination; and how we are affected by social influences, personality, mood and emotions. The implications of understanding the rationale for our own financial behaviour are huge. Behavioural economics could help policy-makers to understand the people behind their policies, enabling them to design more effective policies, while at the same time we could find ourselves assaulted by increasingly savvy marketing. Michelle Baddeley concludes by looking forward, to see what the future of behavioural economics holds for us.ABOUT THE SERIES: The Very Short Introductions series from Oxford University Press contains hundreds of titles in almost every subject area. These pocket-sized books are the perfect way to get ahead in a new subject quickly. Our expert authors combine facts, analysis, perspective, new ideas, and enthusiasm to make interesting and challenging topics highly readable. (shrink)

The book contains thirty original articles dealing with important aspects of theoretical as well as applied economic theory. While the principal focus is on: the computational and algorithmic nature of economic dynamics; individual as well as collective decision process and rational behavior, some contributions emphasize also the importance of classical recursion theory and constructive mathematics for dynamical systems, business cycles theories, growth theories, and others are in the area of history of thought, methodology and behavioural economics. The contributors (...) range from Nobel Laureates to the promising new generation of innovative thinkers. This volume is also a Festschrift in honour of Professor Kumaraswamy Vela Velupillai, the founder of Computable Economics, a growing field of research where important results stemming from classical recursion theory and constructive mathematics are applied to economic theory. The aim and hope is to provide new tools for economic modelling. This book will be of particular appeal to postgraduate students and scholars in one or more of the following fields: computable economics, business cycles, macroeconomics, growth theories, methodology, behavioural economics, financial economics, experimental and agent based economics. It might be also of importance to those interested on the general theme of algorithmic foundations for social sciences. (shrink)

ABSTRACTWhether behavioural economics has a fundamental influence on economics is debated by behavioural and heterodox economists as well as by methodologists and historians of economics. At the core of this debate is the question whether behavioural economics is shaped by large-scale content imports from psychology or whether these transfers have been too selective to challenge dominant approaches in economics. This study contributes to the debate in analysing a variety of bibliographic data from (...) the disciplinary boundary between economics and psychology. Two data sets from the boundary of behavioural economics and psychology are compared to sets of economic and psychology publications in quantifying the use of mathematics, the share of empirical contributions, the authors' academic background, and their cross-citations via network analysis. In contrast to proposals made by some methodologists and behavioural economists, the statistical results confirm content transfers from psychology via behavioural ec... (shrink)

European Journal of Political Theory, Ahead of Print.

The field of behavioural economics has produced a number of valuable insights into the psychology of irrational behaviour, consumerism and morality. One particularly interesting line of research is that of dishonesty, especially the episodic dishonesty of generally honest people. Currently, an experimental paradigm examining these kinds of research questions is being undertaken, and, using Dan Ariely's Predictably Irrational as a starting point, can broaden the scope of behavioural economics to consider philosophically salient issues as well. In (...) this article, a survey of the ability of behavioural economics to investigate traditionally philosophical questions, as well as moral issues, will be undertaken. A particular focus will be the discussion of further research directions made available by the paradigm of “experimental philosophy” and how behavioural economics can inform this project, followed by a discussion of the current experimental paradigm, and why this research will have larger consequences in a number of social dimensions. (shrink)

Since 1995, the annual Graz Schumpeter lectures have been delivered by eminent economists such as Stanley J. Metcalfe, Nathan Rosenberg and Duncan Foley. Routledge are proud to publish the lectures as new books each year. The latest book in this series come from Simon Gächter, an expert in the psychology of economic decision making. Gächter analyses the latest scientific research on human and social cognitive and emotial biases which help to better understand economic decisions and how they affect the market. (...) Research in this area is at the cutting edge of economics and this volume will be of interest to all serious economists across the globe. (shrink)

In The Community of Advantage, Robert Sugden reconstructs and defends an account of the liberal tradition in normative economics in the light of the findings of Behavioural Economics. In...

The links between self-interest and morality have been examined in moral philosophy since Plato. Economics is a mostly value-free discipline, having lost its original ethical dimension as described by Adam Smith. Examining moral philosophy through the framework provided by economics offers new insights into both disciplines and the discussion on the origins and nature of morality. The Morality of Economic Behaviour: Economics as Ethics argues that moral behaviour does not need to be exogenously encouraged or enforced because (...) morality is a side effect of interactions between self-interested agents. The argument relies on two important parameters: behaviour in a social environment and the effects of intertemporal choice on rational behaviour. Considering social structures and repeated interactions on rational maximisation allows an argument for the morality of economic behaviour. Amoral agents interacting within society can reach moral outcomes. Thus, economics becomes a synthesis of moral and rational choice theory bypassing the problems of ethics in economic behaviour whilst promoting moral behaviour and ethical outcomes. This approach sheds new light on practical issues such as economic policy, business ethics and social responsibility. (shrink)

Although neoclassical economics faces frequent criticism, it remains the dominant paradigm, largely due to its immunisation strategies that rely on unfalsifiable concepts of utility and rationality. In this paper, I use Karl Popper’s philosophy to assess whether these strategies are justified. Firstly, I reconstruct Popper’s ideas on immunisation strategies, situational analysis, the rationality principle, and the metaphysical research programme. Next, I examine how neoclassical economics’ immunisation strategies counter critiques from behavioural economics. I conclude that neoclassical (...) class='Hi'>economics’ method does not produce empirical conjectures. I assess and evaluate this finding in relation to the “rationality principle”, as it parallels neoclassical economics’ optimisation axiom. Furthermore, I explore Popper’s relevance in the context of neoclassical economics’ recent incorporation of behavioural economics’ insights to show that my analysis is not purely historical. (shrink)

Mark Blaug played a central role in the development of the field of the methodology of economics, alongside his theoretical work and contributions to the history of economic thought. The purpose, in this article, is to focus on his contributions to the topic of 'formalism in economics', in relation to his methodological commentaries on the Popperian and Lakatosian approaches to the philosophy of science. In Blaugian spirit, the discussion is related to economic theory and draws on the history (...) of economic thought. The argument focuses on the troublesome interface between theoretical and applied economics in mainstream economics. The article includes, as a case study, an assessment of new behavioural economics in Popperian and Lakatosian terms. The conclusion is that such an appraisal exercise—i.e., whether the research programme is progressive or degenerative—is clouded by the interface between the form of empiricism promoted by Popper and Lakatos and the methodological framework of mainstream economics. No conclusion is feasible independent of methodological approach. (shrink)

Decision-making regarding healthcare expenditure hinges heavily on an individual's health status and the certainty about the future. This study uses data on propensity of general health exam (GHE) spending to show that despite the debate on the necessity of GHE, its objective is clear—to obtain more information and certainty about one’s health so as to minimise future risks. Most studies on this topic, however, focus only on factors associated with GHE uptake and overlook the shifts in behaviours and attitudes regarding (...) different levels of cost. To fill the gap, this study analyses a dataset of 2068 subjects collected from Hanoi (Vietnam) and its vicinities using the baseline-category logit method. We evaluate the sensitivity of Vietnamese healthcare consumers against two groups of factors (demographic and socioeconomic-cognitive) regarding payment for periodic GHE, which is not covered by insurance. Our study shows that uninsured, married and employed individuals are less sensitive to cost than their counterparts because they value the information in reducing future health uncertainty. The empirical results challenge the objections to periodic health screening by highlighting its utility. The relevance of behavioural economics is further highlighted through a look at the bounded rationality of healthcare consumers and private insurance companies in using and providing the service, respectively. (shrink)

I reconsider Bleichrodt, Pinto Prades and Wakker’s 2001 paper about eliciting utility measures from stated preference surveys. That paper pioneers a method that is now widely used in behavioural economics to correct individuals’ ‘biases’ and to recover their ‘true preferences’. However, BPW propose this method as way of dealing with inconsistent responses to stated preference surveys, in contrast to more recent applications which aim to help individuals to avoid supposed mistakes in their private choices. I argue that the (...) concepts of true preference and bias are empirically ungrounded, but that BPW’s approach can be interpreted as not invoking those concepts. By ‘regularising’ preferences revealed in actual choice, this approach constructs measures of individual welfare that are broadly aligned with actual preferences and consistent with normative standards of rationality that are appropriate for public decision-making. Public decision-makers’ normative judgements are made explicit, rather than being disguised as apparently empirical claims about true preferences. (shrink)

Volume 31, Issue 3, September 2024, Page 181-185.

Building on an overview of dual systems theories in behavioural economics, the paper presents a methodological assessment in terms of the mechanistic explanations framework that has gained prominence in philosophy of the neurosciences. I conclude that they fail to meet the standards of causal explanations and I suggest an alternative ‘dual functions’ view based on Marr’s methodology of computational neuroscience. Recent psychological and neuroscience research undermines the case for a categorization of brain processes in terms of properties such (...) as relative speed. I defend an interpretation of dualities as functional, without assigning them to specific neurophysiological structures. (shrink)

ABSTRACT This paper compares two alternative answers to the question ?Who is the addressee of welfare economics?? These answers correspond with different understandings of the status of the normative conclusions of welfare economics and have different implications for how welfare economics should be adapted in the light of the findings of behavioural economics. The conventional welfarist answer is that welfare economics is addressed to a ?social planner?, whose objective is to maximize the overall well-being (...) of society; the planner is imagined as a benevolent despot, receptive to the economist's advice. The alternative contractarian answer is that welfare economics is addressed to individuals who are seeking mutually beneficial agreements; a contractarian recommendation has the form ?It is in the interests of each of you separately that all of you together agree to do x?. Each of these answers should be understood as a literary convention that uses a highly simplified model of politics. I defend the contractarian approach and show that it is less supportive of ?soft paternalism? than is the welfarist approach. (shrink)

Behavioural economics has taught us that human agents don't always display consistent, context-independent and stable preferences in their choice behaviour. Can we nevertheless do welfare economics...

Behavioral economics focuses mainly on how limitations of the human cognitive apparatus, risk attitudes, and human sociality affect decision making. The former two lead to deviations from rationality standards, the latter to deviations from rational self-interest. Some of these research interests are also shared by evolutionary psychology which, however, explains the observed deviations by features of the human genetic endowment conjectured to have evolved under fierce selection pressure in early human phylogeny. Important as the decision-making theoretical perspective of the (...) two disciplines is, it will be claimed to be too narrow to fully account for what an evolutionary approach has to say about economic behavior. This is particularly true regarding the questions of what choices are made and what causes them, i.e., the motivational aspects of behavior. In the language of economics this points to the agents’ preferences. This article discusses how preferences relate to the human genetic endowment, how they can change over time, and what conclusions have to be drawn from extending the analysis to the motivational side. (shrink)

Attempts to explain human behavior that appeal to economic rationality share many of the same ontological as- sumptions and methodological practices that the so-called ‘adaptationist program’ in biology was criticized for. This program in biology was largely abandoned by biologists as poorly motivated, and replaced with the active testing of both adaptive and non-adaptive hypotheses regarding the spread and maintenance of traits in populations. This development was largely welcome by the biological community, despite having required the development of new tools, (...) both conceptual and method- ological. Many analysts of contemporary microeconomic practice criticize the assumptions and practices employed therein as similarly poorly motivated. Close attention to these criticisms reveal them to have more than superficial similarities to the critiques of adaptationism in biology. These similarities extend to some macroeconomics researchers recent suggestions of ways that hypotheses regarding the causes of people’s actions might be tested; as yet, however, these suggestions have not been embraced by the field as a whole. By attending to the ways in which biological practice has moved beyond the adaptationist program, similar changes in economic practice may be motivated. (shrink)

The article suggests that in a modern context, where value pluralism is a prevailing and possibly, even ethically desirable interaction condition, institutional economics provides a more viable business ethics than behavioural business ethics, such as Kantianism or religious ethics. The article explains how the institutional economic approach to business ethics analyses morality with regard to an interaction process, and favours non-behavioural, situational intervention with incentive structures and with capital exchange. The article argues that this approach may have (...) to be prioritised over behavioural business ethics, which tends to analyse morality at the level of the individual and favours behavioural intervention with the individual’s value, norm and belief system, e.g. through ethical pedagogy, communicative techniques, etc. Quaker ethics is taken as an example of behavioural ethics. The article concludes that through the conceptual grounding of behavioural ethics in the economic approach, theoretical and practical limitations of behavioural ethics, as encountered in a modern context, can be relaxed. Probably only then can behavioural ethics still contribute to raising moral standards in interactions amongst the members (stakeholders) of a single firm, and equally, amongst (the stakeholders of) different firms. (shrink)

The essays in this book discuss human behavior and the institutions of capitalism. The essays are non-technical and are written so as to be accessible to students of all disciplines and to all other persons interested in capitalism and in economic behavior. They often present unconventional views of the topics they discuss. Those containing unconventional views discuss self-interested behavior, selfish gene theory, the meaning and social function of private ownership, the externality problem, the nature of the firm and the rise (...) of capitalism. The essays are not meant to be a textbook, but they offer a useful supplementary reading source for courses in business, economics and law that deal with human behavior in the marketplace and with capitalism, ownership, markets and firms. (shrink)

I am a behavioral economist, who is interested in both behavioral sciences and economic behavior. By the term “economic behavior” I refer to the calculative reasoned domain of economic analysis, whereas by “behavioral economics” I address aspects of human feelings, emotions and everything that is not captured by the “rational” paradigm. Evidently, erroneous calculations, as well as unhinged sentiments lead to economic losses, and every change in the economics of the world has both calculative and behavioral sides to (...) it. In what follows, we examine these two sides of behavior in relation to the COVID-19 pandemic by drawing on contemporaneous data, forecasts, and images. Each side of behavior reveals distinctive insights, and intriguingly, not all outcomes count as loss. As we face this crisis, there is a clear environmental gain that we would be smart to preserve post pandemic. (shrink)

This book is about the conceptual foundations of an intermediate way between liberalism and socialism: a synthesis of classical and Keynesian political economy. Classical theory deals with proportions between individuals or collectives and society in tackling problems of distribution and value. Keynesian theory is concerned with the scale of economic activity as explained by effective demand. The economy considered is primarily a monetary production economy, not a market or a planned economy. The author sets up a system linking political economy (...) with other social sciences, i.e. sociology, law and politics in the traditional sense, thus establishing the unity of the social sciences. To complete the picture, issues of method associated with the theory of knowledge in the social sciences and the problem of linking theory with historical reality are also covered. (shrink)

Economic theory may explain the behavior of animals. Its application to animals is not straightforward, however.

This paper argues that economic rationality and ethical behavior cannot be reduced one to the other, thus casting doubt on the validity of assertions such as ‘profit is ethical’ or ‘ethics pays’. In order to express ethical dilemmas in a way which opposes economic interest with ethical concerns, we propose a model of rational behavior that combines these two irreducible dimensions in an open but not arbitrary manner. Behaviors that are neither ethical nor profitable are considered irrational . However, behaviors (...) that are profitable but unethical, and behaviors that are ethical but not profitable, are all treated as rational . Combining ethical concerns with economic interest, ethical business is in turn seen as an optimal form of rationality between venality and sacrifice. Because everyone prefers to communicate that they act ethically, ethical business remains ambiguous until some economic interest is actually sacrificed. We argue, however, that ethical business has an interest in demonstrating its consistency between communication and behavior by a transparent attitude. On the other hand, venal behaviors must remain confidential to hide the corresponding lack of consistency. This discursive approach based on transparency and confidentiality helps to further distinguish between ethical and unethical business behaviors. (shrink)

Since his pioneering application of economic analysis to racial discrimination, Gary S. Becker has shown that an economic approach can provide a unified framework for understanding all human behavior. In a highly readable selection of essays Becker applies this approach to various aspects of human activity, including social interactions; crime and punishment; marriage, fertility, and the family; and "irrational" behavior. "Becker's highly regarded work in economics is most notable in the imaginative application of 'the economic approach' to a surprising (...) breadth of human activity. Becker's essays over the years have inevitably inspired a surge of research activity in testimony to the richness of his insights into human activities lying 'outside' the traditionally conceived economic markets. Perhaps no economist in our time has contributed more to expanding the area of interest to economists than Becker, and a number of these thought-provoking essays are collected in this book."—Choice Gary Becker was awarded the Nobel Prize in Economic Science in 1992. (shrink)

This book details the results of the authors' research using laboratory animals to investigate individual choice theory in economics-consumer-demand and labour supply behaviour and choice under uncertainty. The use of laboratory animals provides the opportunity to conduct controlled experiments involving precise and demanding tests of economic theory with rewards and punishments of real consequence. Economic models are compared to psychological and biological choice models along with the results of experiments testing between these competing explanations. Results of animal experiments are (...) used to address questions of social policy importance. (shrink)

This book develops dynamic economic models using the perspective and analytic framework provided by psychological learning theory. This framework is used to resolve apparent contradictions between optimization theory, which lies at the heart of all modern economic theory, and day-to-day evidence that short-run economic behaviour cannot reasonably be described solely as the outcome of efficiently implemented self-interest. The author applies this viewpoint to a number of problem areas in which literal applications of maximization theory have not usually proved to be (...) satisfactory. These include analyses of decision-making under uncertainty and gambling behaviour, the role of consumer-oriented advertising in influencing behaviour, the persistence of price dispersions in markets, and inflation. (shrink)

My brand of evolutionary economics recognizes, highlights, that modern economies are always in the process of changing, never fully at rest, with much of the energy coming from innovation. This perspective obviously draws a lot from Schumpeter. Continuing innovation, and the creative destruction that innovation engenders, is driving the system. There are winners and losers in the process, but generally the changes can be regarded as progress. The processes through which economic activity and performance evolve has a lot in (...) common with evolution in biology. In particular, at any time the economy is marked by considerable variety, there are selection forces winnowing on that variety, but also continuing emergence of new ways of doing things and often economic actors. But there also are important differences from biological evolution. In particular, both innovation and selection are to a considerable degree purposive activities, often undertaken on the basis of relatively strong knowledge. (shrink)

We investigated the significance of an economic crisis for organizations’ ethical behavior, employees’ unethical behavior, and association. To capture the effect of the “2008’ World economic crisis,” we compared the behaviors of organizations and employees’ unethical behavior during a crisis with their behavior in more favorable circumstances before and after the crisis. We used structural equation modeling to analyze answers collected from 2024 employees in Slovenian organizations between 2006 and 2016. The results showed significant growth of organizational engagement in ethical (...) behavior, despite the crisis in the middle of the observed period. The employees’ unethical behavior was significantly less acceptable in crisis compared to before the crisis, while after the crisis, its acceptability increased again, despite not significant. The aggregate sample revealed a significantly negative influence of employee’s unethical behavior on organizations’ ethical behavior that was not significantly different across the considered periods. The research suggests the need to manage the organization’s ethical behavior in times of economic downturn, like in the present COVID 19. Additionally, managers need to devote more attention to prevent employees’ unethical behavior and its influence on organizations’ ethical behavior. (shrink)

Economists, in stressing the prescriptive implications of their analysis, typically have ignored the potential contributions of their theorems and methodological principles to the understanding of human behavior as an end in itself. The purpose of the paper is to establish the principle, by detailed reference to the literature of economics, that the 'deductive pattern of explanation' constitutes a valid approach to the general study of human behavior. As such, it is a potentially useful method of analysis in the other (...) social sciences. Literature from the philosophy of social science bearing on the applicability of deductive theory to the study of human behavior is subjected to detailed critical analysis. (shrink)

For most observers of economics from both inside and outside the science, the term ‘economics’ is synonymous with neoclassical economics. It is the methodology of neoclassical economics that defines the discipline of economics. ‘Mainstream economics’ is neoclassical economics and anyone entering the discipline today who wishes to obtain an appointment at one of the leading universities of the world is well advised to master its techniques. The fact that virtually every winner of a (...) Nobel prize from Paul Samuelson up to his student Joseph Stiglitz has been a practitioner of neoclassical economics is ample proof of the methodology’s triumph. Despite the dominance of this methodology, however, neoclassical economics has been subject to a steady stream of criticisms and proposals for alternative methodological approaches throughout its life. This article focuses on two relatively recent challenges to the neoclassical orthodoxy that seem to have taken hold of a non-negligible minority of the profession, some of whom can be found at leading universities. These two challenges come from behavioural economics and evolutionary economics. The article describes the strengths and weaknesses of both of these methodological approaches and contrasts them with that of neoclassical economics. It concludes that all three methodologies have something positive to contribute to the study of human behaviour. Key Words: neoclassical economics • behavioural economics • evolutionary economics. (shrink)

_Organization and Economic Behaviour_ presents all the basic elements of organizational theory and behaviour. Different approaches are analysed, with a strong focus on reintegrating sociological, psychological and economic contributions to the subject. This unique volume is clearly written and is designed to address a wide audience, including students and academics, with the following material: * case studies and illustrations * exercises * discussion questions * further reading suggestions * a glossary.

This anthology highlights the theoretical foundations as well as the various applications of Behavioural Law and Economics in European legal culture. By the same token, it fosters the dialogue between European and American Law and Economics scholars. The traditional neo-classical microeconomic theory explains human behaviour by using Rational Choice. According to this model, people tend to maximize the difference between expected utility and cost ("expected utility theory"). This theory includes three assumptions: (1) unbounded rationality, (2) unbounded self-interest, (...) and (3) unbounded willpower. Behavioural Economics questions these assumptions and endeavours to render economic analysis more realistic by underpinning it with psychological insights. In recent years, the influence of Behavioural Economics on the Economic Analysis of Law has gained momentum. Behavioural Law and Economics generates a better theoretical understanding of legal phenomena and offers a multitude of applications in legislation and legal adjudication. This volume is testament to the growing and thriving Law and Economics movement in Europe. The European Law and Economics community has steadily grown and the yearly Law and Economics Conference at the law faculty of the University of Lucerne has successfully become a guiding star in the vast sky of Law and Economics. (shrink)

In recent years the understanding of the cognitive foundations of economic behavior has become increasingly important. This volume contains contributions from such leading scholars as Adam Brandenburger, Michael Bacharach and Patrick Suppes. It will be of great interest to academics and researchers involved in the field of economics and psychology as well as those interested in political economy more generally.

(1992). Cultural contingencies and economic behavior: Return migration in Portugal. World Futures: Vol. 33, Culture and Development: European Experiences and Challenges A Special Research Report of the European Culture Impact Research Consortium (EUROCIRCON), pp. 155-164.

An important research programme has developed in economics that extends neo-classical economic theory in order to examine the effects of institutions on economic behaviour. The body of work emerging from this line of inquiry includes contributions from various branches of economic theory, such as the economics of property rights, the theory of the firm, cliometrics and law and economics. This book is a comprehensive survey of this research programme which the author terms 'neoinstitutional economics'. The author (...) proposes a unified approach to this research, integrating the work of various contributors and emphasising the common principles of inquiry that tie the work together. The theoretical discussion is accompanied by empirical studies dealing with a range of institutions and economic systems. This book will serve as the primary resource for economists and students who want to learn about this important branch of economic theory. (shrink)

Behavioural welfare economics has lately been challenged on account of its use of the satisfaction of true preferences as a normative criterion. The critique contests what is taken to be an implicit assumption in the literature, namely that true preferences are context-independent. This assumption is considered not only unjustified in the behavioural welfare economics literature but unjustifiable – true preferences are argued to be, at least sometimes, context-dependent. This article explores the implications of this ‘critique of (...) the inner rational agent’. I argue that the critique does not support a wholesale shift away from the use of true preferences as an evaluative standard in normative economics; instead, the critique implies that behavioural welfare economists need to inquire into and establish the ‘source’ of particular context-dependent choices in individuals’ decision-making. The source determines the permissibility of correcting individuals’ context-dependent choices and can, in some situations, support decisive welfare judgements. (shrink)

This second Cambridge University Press collection of papers by Vernon L. Smith, a creator of the field of experimental economics, includes many of his primary authored and coauthored contributions on bargaining and market behavior between 1990 and 1998. The essays explore the use of laboratory experiments to test propositions derived from economics and game theory. They also investigate the relationship between experimental economics and psychology, particularly the field of evolutionary psychology, using the latter to broaden the perspective (...) in which experimental results are interpreted. The volume complements Professor Smith's earlier work by demonstrating the importance of institutional features of markets in understanding behavior and market performance. Specific themes investigated include rational choice, the notion of fairness, game theory and extensive form experimental interactions, institutions and market behavior, and the study of laboratory stock markets. (shrink)

Shortcomings in the target article preclude adequate tests of developmental/attachment and strategic pluralism theories. Methodological problems include comparing college student attitudes with societal level indicators that may not reflect life conditions of college students. We show, through two principal components analyses, that multiple tests of the theories reduce to only two findings that cannot be interpreted as solid support for evolutionary hypotheses.

The connection between economics and ethics is as old as economics itself, and central to both disciplines. It is an issue that has recently attracted much interest from economists and philosophers. The connection is, in part, a result of the desire of economists to make policy prescriptions, which clearly require some normative criteria. More deeply, much economic theory is founded on the assumption of utility maximization, thereby creating an immediate connection between the foundations of economics and the (...) philosophical literature on utilitarianism and reasons for action. In fact, some influential contemporary approaches to ethics advocate decision-theoretic or game-theoretic foundations of some sort for moral principles, while several economic theorists are now prepared to take into account the ethical dimensions of rational decisions. As a result, it appears that economics and ethics are somehow inextricably linked through theories of rational decision-making. Most of us would probably find it disturbing to concede that there are contradictions between the prescriptions of rationality and the requirements of moral `rightness'. The essays included in the present volume provide a detailed analysis of the connections between ethics and economics as viewed from several different - sometimes conflicting - perspectives. This book, the outcome of a joint meeting of philosophers and economists, has three main themes: the validity of utilitarianism much used by economists, the notion of fairness and equity, and the coherence of the rationality postulate of economics. The book does not reach any final conclusions, but it greatly illuminates the exact areas of possible disagreement and indeed the open-ended nature of ethical reasoning. There is much that economists, and especially welfare economists, can learn from these papers - not least circumspection. (shrink)