Behavioral Economics

Health economics - Behavioral economics 1 Peter R. Orszag|Peter Orszag has suggested that behavioral economics is an important factor for improving the health care system, but that relatively little progress has been made when compared to retirement policy.Peter R. Orszag|Peter Orszag, [ -07-Presentation_RRC.pdf Behavioral Economics: Lessons from Retirement Research for Health Care and Beyond,] Presentation to the Retirement Research Consortium, August 7,

Time inconsistency - In behavioral economics 1 In the context of behavioral economics, time inconsistency is related to how each different self of a decision-maker may have different preferences over current and future choices.

Behavioral economics 1 'Behavioral economics' and the related field, 'behavioral finance', study the effects of social, cognitive bias|cognitive, and emotional factors on the economic decision making|decisions of individuals and institutions and the consequences for market prices, profit (economics)|returns, and the allocation of resources|resource allocation.Lin, Tom C

Behavioral economics 1 The study of behavioral economics includes how market decisions are made and the mechanisms that drive public choice.

Behavioral economics - Behavioral finance 1 Behavioral finance highlights inefficiencies such as under- or over-reactions to information as causes of market trends (and in extreme cases of Economic bubble|bubbles and Stock market crash|crashes). Such reactions have been attributed to limited investor attention, overconfidence, overoptimism, mimicry (herding instinct) and noise trader|noise trading. Technical analysts consider behavioral finance, behavioral economics' academic cousin, to be the theoretical basis for technical analysis.

Behavioral economics - Behavioral game theory 1 (2003), Advances in Behavioral Economics, Princeton, ch

Behavioral economics - Prospect theory 1 Psychological traits such as overconfidence, projection bias, and the effects of limited attention are now part of the theory. Other developments include a conference at the University of Chicago, a special behavioral economics edition of the Quarterly Journal of Economics ('In Memory of Amos Tversky') and Kahneman's 2002 Nobel for having integrated insights from psychological research into economic science, especially concerning human judgment and decision- making under uncertainty.

Behavioral economics - Intertemporal choice 1 Behavioral economics has also been applied to intertemporal choice

Behavioral economics - Other areas of research 1 Other branches of behavioral economics enrich the model of the utility function without implying inconsistency in preferences

Behavioral economics - Other areas of research 1 Behavioral economics caught on among the general public, with the success of books like Dan Ariely's Predictably Irrational. Practitioners of the discipline have studied quasi-public policy topics such as Broadband mapping in the United States|broadband mapping.

Behavioral economics - Criticisms 1 Traditional economists are also skeptical of the experimental and survey-based techniques which behavioral economics uses extensively. Economists typically stress revealed preferences over stated preferences (from surveys) in the determination of economic value. Experiments and surveys are at risk of systemic biases, strategic behavior and lack of incentive compatibility.

Behavioral economics - Criticisms 1 Some economists see a fundamental schism between experimental economics and behavioral economics, but prominent behavioral and experimental economists tend to share techniques and approaches in answering common questions

Behavioral economics - Criticisms 1 Other proponents of behavioral economics note that neoclassical models often fail to predict outcomes in real world contexts. Behavioral insights can influence neoclassical models. Behavioral economists note that these revised models not only reach the same correct predictions as the traditional models, but also correctly predict some outcomes where the traditional models failed.

Microeconomics - Behavioral economics 1 Daniel Kahneman|Kahneman and Amos Tversky|Tversky published a paper in 1979 criticizing the very idea of the Rational choice theory|rational economic agent. The main point is that there an asymmetry in the psychology of the economic agent that gives a much higher value to losses than to gains. This article is usually regarded as the beginning of behavioral economics and has consequences particularly regarding the world of finance. The authors summed the idea in the abstract as follows:

Cognitive bias mitigation - Behavioral economics 1 Behavioral Economics

John A. List - Behavioral economics 1 List's research on behavioral economics has focused on testing theories like gift exchange, social preferences, and prospect theory

John A. List - Behavioral economics 1 List's recent work in behavioral economics has found that framing can induce increased worker productivity., 4/new-economists-worth-knowing/ and has been picked up by several corporations around the world.

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