Behavioural Economics and Finance, 2nd Edition
by Michelle Baddeley (Author)

About the author
Michelle Baddeley is a behavioural econo-mist and applied econo-mist based at the University of South Australia’s Institute for Choice in Sydney. She is an Honorary Professor with University College London’s Institute for Global Prosperity, Associate Researcher with the Cambridge Energy Policy Research Group and Associate Fellow with the Centre for Science and Policy, University of Cambridge. She has also worked with policy-makers across a diverse range of themes and her research brings economic insights from applied economics, behavioural economics, behavioural finance and neuroeconomics to multidisciplinary studies.

About this book
Behavioural economics and behavioural finance are rapidly expanding fields that are continually growing in prominence. While orthodox economic models are built upon restrictive and simplifying assumptions about rational choice and efficient markets, behavioural economics offers a robust alternative using insights and evidence that rest more easily with our understanding of how real people think, choose and decide. This insightful textbook introduces the key concepts from this rich, interdisciplinary approach to real-world decision-making.
This new edition of Behavioural Economics and Finance is a thorough extension of the first edition, including updates to the key chapters on prospect theory; heuristics and bias; time and planning; sociality and identity; bad habits; personality, moods and emotions; behavioural macroeconomics; and well-being and happiness. It also includes a number of new chapters dedicated to the themes of incentives and motivations, behavioural public policy and emotional trading. Using pedagogical features such as chapter summaries and revision questions to enhance reader engagement, this text successfully blends economic theories with cutting-edge multidisciplinary insights.
This second edition will be indispensable to anyone interested in how behavioural economics and finance can inform our understanding of consumers’ and businesses’ decisions and choices. It will appeal especially to undergraduate and graduate students but also to academic researchers, public policy-makers and anyone interested in deepening their understanding of how economics, psychology and sociology interact in driving our everyday decision-making.

Brief contents
1 Introducing behavioural economics 1
Part I Microeconomic principles 17
2 Motivations and incentives 19
3 Heuristics and bias 35
4 Prospects and regrets 54
5 Learning 74
6 Sociality and identity 97
7 Time and plans 109
8 Bad habits 125
9 Personality, moods and emotions 141
Part II EXTENSIONS: POLICY, NEUROECONOMICS AND BEHAVIOURAL FINANCE 159
10 Behavioural public policy 161
11 Neuroeconomics I: principles 176
12 Neuroeconomics II: evidence 196
13 Behavioural anomalies in finance 214
14 Corporate investment and finance 231
15 Emotional trading 242
Part III Macroeconomics and financial sys tems 253
16 Behavioural macroeconomics 255
17 Financial instability and macroeconomic performance 271
18 Happiness and well-being 286
Bibliography 299
Index 331

Pages: 354 pages
Publisher: Routledge; 2 edition (October 17, 2018)
Language: English
ASIN: B07JHM37S8