Introduction to Behavioral Economics
David R. Just
2013 | 528 Pages | ISBN: 0470596228 | PDF | 11 MB



Introduction to Behavioral Economics is focused on the broad principles of behavior, which are illustrated using real-world examples from experimental literature as well as experiential examples. Real-world examples are drawn from news items, historical accounts and the economics literature. Experimental examples are drawn from the economics literature. These examples are discussed providing explanatory figures and interpretations. With the rise of both behavioral finance and behavioral industrial organization, undergraduates now clamor for formal training and instruction in behavioral economics. Introduction to Behavioral Economics covers all the ways consumers and other economic agents behave in nonrational manner and prepares readers to make rational economic choices. This text provides experiments as a set of examples of the broader principles of behavior.

Contents
Preface xv
1 Rationality, Irrationality, and Rationalization 1
Part 1 Consumer Purchasing Decisions
2 Transaction Utility and Consumer Pricing 17
3 Mental Accounting 41
4 Status Quo Bias and Default Options 70
5 The Winner’s Curse and Auction Behavior 93
Part 2 Information and Uncertainty
6 Bracketing Decisions 125
7 Representativeness and Availability 156
8 Confirmation and Overconfidence 187
9 Decision under Risk and Uncertainty 214
10 Prospect Theory and Decision under Risk or Uncertainty 250
Part 3 Time Discounting and the Long and Short Run
11 Disagreeing with Ourselves: Projection and Hindsight Biases 281
12 Naïve Procrastination 309
13 Committing and Uncommitting 347
Part 4 Social Preferences
14 Selfishness and Altruism 389
15 Fairness and Psychological Games 417
16 Trust and Reciprocity 450
Glossary 473
Index 495