Economics and Psychology: A Promising New Cross-Disciplinary by Bruno S. Frey, Alois Stutzer PDF

By Bruno S. Frey, Alois Stutzer

ISBN-10: 0262062631

ISBN-13: 9780262062633

ISBN-10: 1429480297

ISBN-13: 9781429480291

The combination of economics and psychology has created a colourful and fruitful rising box of research. The essays in Economics and Psychology take a vast view of the interface among those disciplines, going past the standard specialise in ''behavioral economics.'' As documented during this quantity, the impression of psychology on economics has been chargeable for a view of human habit that calls into query the belief of whole rationality (and increases the opportunity of altruistic acts), the reputation of experiments as a sound approach to financial learn, and the concept application or health should be measured. The members, all prime researchers within the box, provide state of the art discussions of such subject matters as pro-social habit and the function of conditional cooperation and belief, happiness study as an empirical instrument, the potential for neuroeconomics which will deepen figuring out of person choice making, and procedural software as an idea that captures the health humans derive at once from the tactics and prerequisites resulting in results. Taken jointly, the essays in Economics and Psychology provide an overview of the place this new interdisciplinary box stands and what instructions are so much promising for destiny study, delivering an invaluable consultant for economists, psychologists, and social scientists.

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While a large number of people seem to be conditional cooperators, a significant fraction of subjects is best characterized as free riders. Some others show more complicated patterns. 3 I will discuss experiments that test directly for implications of preference heterogeneity. Before I do so, I will discuss evidence from the field. 2 Evidence from Field Experiments Field experiments offer a great opportunity to test the behavioral relevance of laboratory findings in naturally occurring contexts (see also Harrison and List 2004).

I am grateful to a referee for suggesting this possibility. 7. Quoted from The Economist, July 27, 2002, p. 58. 8. An anonymous referee suggested, citing the following anecdotal evidence, that communication might be very important. 5 billion from over 350,000 individuals). The tax amnesty was accompanied by intensive media activity. Celebrities such as sport and film stars promoted participation in the amnesty program, which contributed greatly to its success. , B. Irlenbusch, and E. Renner. 2002.

Why is this so? One explanation is that people have altruistic or warm-glow preferences, but also have to learn how to play this game. Since errors can only go in one direction, any erroneous decision looks like a contribution. Palfrey and Prisbrey (1997) test these explanations and find that the data are inconsistent with altruism. They find some evidence for warm-glow preferences but also conclude that people learn and commit fewer errors over time, which is why contributions decline. Notice that warm glow, altruism, and errors are motivations that are independent of others’ contributions.

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Economics and Psychology: A Promising New Cross-Disciplinary Field by Bruno S. Frey, Alois Stutzer


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