Behavioural economics and finance:
Gespeichert in:
1. Verfasser: | |
---|---|
Format: | Buch |
Sprache: | English |
Veröffentlicht: |
London [u.a.]
Routledge
2013
|
Ausgabe: | 1. publ. |
Schriftenreihe: | Routledge advanced texts in economics and finance
18 |
Schlagworte: | |
Online-Zugang: | Inhaltsverzeichnis Klappentext |
Beschreibung: | XVI, 305 S. Ill, graph. Darst. 25 cm |
ISBN: | 0415614775 0415614783 9780415614771 9780415614788 |
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Datensatz im Suchindex
_version_ | 1804149059933437952 |
---|---|
adam_text | Table
of
contents
List of
illustrations
xv
Acknowledgements
xvii
PART
1
Background
1
1
Introduction
3
What is behavioural economics?
3
Why behavioural finance?
3
A quick history of behavioural economics
4
David Hume
4
Adam Smith
5
Jeremy
Bentham
5
Vilfredo Pareto
6
Irving Fisher
6
John Maynard Keynes
6
Friedrich
von
Hayek
7
George
Katona
8
Modern behavioural economics versus standard approaches
8
What are the standard assumptions of neoclassical economics?
8
Methodological tools
10
Game theory
11
Experimental economics
11
Behavioural policy implications
13
The structure of Behavioural Economics and Finance
14
A note on mathematics
16
Further reading
16
Some introductions to behavioural economics
16
Behavioural game theory/classical game theory
16
Experimental economics
17
Experimental software
17
2
Foundations: psychology
18
Introduction
18
viii Table of
contents
Personality
theory
19
Freud s psychoanalytic theory
19
Jung s archetypes
20
Modern personality theory
20
Measuring cognitive skills
21
Personality tests
21
Cognitive functioning
22
Behavioural psychology
23
Social psychology
25
Social learning theory
26
Social influences and social pressure
2 7
Conclusion
28
Further reading
29
3
Foundations:
neuroscience
and neuroeconomics
30
Introduction
30
What are nerves and how do they work?
30
Anatomy of the brain
32
Brain areas and functions
34
Modularity
35
Neuroscientific data and techniques
36
Neuroeconomics
41
What is neuroeconomics?
41
Neuroeconomic data
42
Neuroeconomic models and theories
43
Controversies in behavioural economics and neuroeconomics
45
What s next?
46
Further reading
47
PART
2
Behavioural
microeconomic
principles
49
4
Learning
51
Introduction
51
Belief learning
51
A belief learning model
52
Cheung and Friedman
s
experiments
53
Reinforcement learning
54
A reinforcement learning model
55
Erev and Roth
s
empirical evidence
5 7
Experience-weighted attraction
58
Experimental evidence about
EWA
models
58
Comparative econometric evidence on
EWA
versus RL and BL models
60
Social learning and information cascades
61
Social learning theories
61
Experimental tests ofBayesian herding
63
Table of
contents
ix
Other behavioural approaches to social learning
66
Social influence
67
Evolutionary approaches
68
Neuroeconomic analyses of learning and social influence
70
Belief learning and reinforcement learning
70
Reward learning and reward prediction error
70
Observational learning
71
Case study: social influences in real-world networks
73
Social influences on household energy decisions
73
Firms
reputation-building and corporate social responsibility
73
A study of social influences in Indian villages
74
Conclusions and policy implications
75
5
Sociality and identity
77
Introduction
77
Some experimental evidence
77
Ultimatum games and dictator games
79
Experiments with trust games
80
Social preference models
81
Social utility models
81
Cooperation and punishment
86
Altruistic punishment
86
Extrinsic versus intrinsic motivations
86
Evolution and social cues
88
Ostracism in social networks
88
Identity
89
Social identity theory
89
Akerlofand Kranton s identity theory
90
Neuroeconomic analyses
91
de Quervain et al. s
analysis of altruistic punishment in the trust game
91
Neuroeconomic studies of empathy and trust
95
Case study: social norms and environmental decision-making
96
Fairness and inequity aversion
96
Social norms
97
Familial influence and identity
99
Conclusions and policy implications
100
6
Heuristics and biases
102
Introduction
102
Defining rationality
102
Procedural versus substantive rationality
103
Ecological rationality
103
Kahneman s maps of bounded rationality
104
Heuristics and decision-making
105
Tversky and Kahneman on heuristics and biases
106
Representativeness
106
Availability heuristic 111
χ
Table of contents
Anchoring and adjustment
114
Loss aversion, endowment effects and status quo bias
116
Biases and heuristics in expert judgment
118
Choice overload and cognitive dissonance
119
Choice overload
119
Cognitive balance and cognitive dissonance
120
Neuroeconomic analyses
121
Case study: heuristics and biases in real-world decision-making
122
Online heuristics and biases
122
Heuristics, biases and folk wisdom in environmental decision-making
124
Conclusions and policy implications
126
7
Prospects and regrets
128
Introduction
128
Behavioural paradoxes
128
St Petersburg paradox
128
Allais
paradox
129
Ellsberg
paradox
129
Monty Hall/three prisoners paradox
130
Expected utility theory
131
Bar-Hillel and
Falk
s
solution to the three prisoners problem
131
Kahneman and Tversky s critique of expected utility theory
132
Certainty effect
135
Reflection effect
136
Isolation effect
137
Kahneman and Tversky s prospect theory
138
Editing phase
138
Evaluation
139
The value function
139
Loss aversion
141
The weighting function
141
Evidence from game shows
143
Cumulative prospect theory
144
Mental accounting and framing
144
Mental accounting
144
Framing and bracketing
146
Regret theory
147
Neuroeconomic analyses
149
Case study: buying insurance
150
Conclusions and policy implications
151
8
Personality, moods and emotions
153
Introduction
153
Personality and individual differences
153
Personality and cognition
155
Personality and preference parameters
155
Individual differences and human capital investment
156
Table of
contents
xi
Moods
158
Moods and weather patterns
158
Social mood in socionomic analyses
158
Emotions and affect
159
Emotions and heuristics
160
The somatic marker hypothesis
160
Basic instincts and visceral factors
162
Social emotions
163
Cognition and emotion in dual-system models
164
Neuroeconomic analyses
167
Sanfey
et
A. sfMRI study of social emotions
167
Neuroeconomic studies of empathy
170
Case study: emotional trading
170
Conclusions and policy implications
172
9
Time and plans
174
Introduction
174
Exponential discount functions
174
Individual differences with exponential discounting
174
Behavioural discount functions
175
Behavioural anomalies
175
Animal models
176
Behavioural discounting models
176
Time inconsistency in the real world
179
Behavioural life-cycle models
181
Limitations of the Angeletos
et al.
behavioural life-cycle model
183
Temporal mental accounting and bracketing
184
Bracketing in labour supply
184
Neuroeconomic analyses
185
McClure, Laibson, Loewenstein and Cohen s fMRI evidence
185
Glimcher,
Kable
and Louie s analysis of delayed choices
186
Case study:
intertemporal
planning and the environment
187
Behavioural discount functions for environmental decision-making
187
Goals, planning and feedback
188
Conclusions and policy implications
189
10
Bad habits
191
Introduction
191
Rational addiction models
191
Becker, Grossman and Murphy s model
191
Becker and Murphy s empirical evidence
195
Other econometric studies of addiction
196
Rational addiction models: summary of evidence and implications
199
Cue-triggered consumption
200
Laibson s cue theory of consumption
201
Bernheim
and
Rangel
on hot-cold systems
201
Cues in natural addiction models
202
xii
Table of
contents
Visceral factors
203
Neuroeconomic analyses
204
Naqvi
et ali
lesion patient study
204
Post-mortem studies
205
Case study: healthy lifestyles
205
Bad health habits: not going to the gym
207
Conclusions and policy implications
208
PART3
Macroeconomics and financial markets
211
11
Financial instability
213
Introduction
213
Herding, learning and social influences
214
Social learning
214
Beauty contests
215
Reputation
216
Heuristics, biases and prospect theory
216
Over-reactions and under-reactions
217
Diversification biases and the availability heuristic
218
Momentum trading
219
Prospect theory, loss aversion and ambiguity aversion
219
Time and instability
221
Moods, emotions and personality
222
An emotional finance model
223
Akerlofand Shiller s
animal spirits
224
Neuroeconomic evidence
225
Risk, impulsivity and fear
226
Financial herding and social emotions
22 7
Conclusions and policy implications
230
12
Behavioural macroeconomics, happiness and wellbeing
232
Introduction
232
Keynes s psychology of the macroeconomy
233
Keynes s fundamental psychological laws
233
Expectations and the state of confidence
233
Macroeconomic
conventions
234
Entrepreneurial animal spirits
235
A behavioural analysis of
macroeconomic
interactions
236
Akerlofand Shiller
s
animal spirits
23 7
Macroeconomic
actors
238
Investment
238
Consumption and saving
242
Labour markets and unemployment
243
Government policy-making
244
Happiness
245
Table of
contents
xiii
Utility and happiness
246
Wellbeing
247
Measuring wellbeing
249
Wellbeing and the environment
250
Neuroeconomic studies of happiness
252
Conclusions and policy implications
253
Bibliography
255
Index
284
;
and finance usually assume that people are
rational, self-interested maximizers. effectively coordinated via the invisible
hand of the price mechanism. Whilst these approaches produce tractable,
simple models, they cannot fully capture the uncertainties and instabilities that
affect everyday choices in today s complex world. Insights from the other social
and behavioural sciences can help to fill the gap, and behavioural economics
is the subject that brings economics and finance together with psychology,
neuroscience
and sociology. Behavioural Economics and Finance introduces the
reader to some of the key concepts and insights from this rich, interdisciplinary
approach to real-world decision-making.
The book covers a range of themes, including learning, social influence,
inequity aversion and other models of social preference, bounded rationality,
heuristics and biases, prospect theory, regret theory, moods and emotions,
happiness, time inconsistency, present bias and bad habits. Each theme is
explored theoretically and illustrated with findings from the latest experimental/
neuroeconomic research. Concepts are explained intuitively, complemented by
mathematical boxes where relevant, and illustrated with real-world case studies.
To inform those readers without much knowledge of the behavioural sciences,
the book begins with introductory chapters on psychology and
neuroscience.
Chapters showing how behavioural
microeconomic
principles can be applied
to the analysis of aggregate phenomena, including financial instability and
macroeconomic
outcomes such as wellbeing. are also included.
Behavioural Economics and Finance offers a unique interdisciplinary perspective
on the socio-psychological factors underlying human decision-making. Real-
world case studies illuminate the key issues, and new concepts are introduced
step by step to show how behavioural approaches can evolve from standard
models. By bringing together a wide range of ideas and evidence, the book
shows why and how a more interdisciplinary approach can provide economists
with a much fuller understanding of human behaviour in the real world.
Michelle Baddeley is Fellow and Director of Studies (Economics) at Gonville
&
Caius College. Cambridge University. UK.
ECONOMICS
/
PSYCHOLOGY
/
FINANCE
/
BUSINESS
O Routledg»
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Tavlor
&
Francis
Grc
www. routledge, com
ISBN 978-0-415-61478-8
9 780415 614788
|
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classification_rvk | QC 010 |
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id | DE-604.BV040106992 |
illustrated | Illustrated |
indexdate | 2024-07-10T00:17:01Z |
institution | BVB |
isbn | 0415614775 0415614783 9780415614771 9780415614788 |
language | English |
oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-024963420 |
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publisher | Routledge |
record_format | marc |
series | Routledge advanced texts in economics and finance |
series2 | Routledge advanced texts in economics and finance |
spelling | Baddeley, Michelle 1965- Verfasser (DE-588)12436604X aut Behavioural economics and finance Michelle Baddeley 1. publ. London [u.a.] Routledge 2013 XVI, 305 S. Ill, graph. Darst. 25 cm txt rdacontent n rdamedia nc rdacarrier Routledge advanced texts in economics and finance 18 Verhaltensökonomie (DE-588)7751254-6 gnd rswk-swf Kreditmarkt (DE-588)4073788-3 gnd rswk-swf Economics--Psychological aspects. Verhaltensökonomie (DE-588)7751254-6 s Kreditmarkt (DE-588)4073788-3 s DE-604 Erscheint auch als Online-Ausgabe 978-0-203-10451-4 Routledge advanced texts in economics and finance 18 (DE-604)BV037241432 18 Digitalisierung UB Bayreuth application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=024963420&sequence=000003&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis Digitalisierung UB Bayreuth application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=024963420&sequence=000004&line_number=0002&func_code=DB_RECORDS&service_type=MEDIA Klappentext |
spellingShingle | Baddeley, Michelle 1965- Behavioural economics and finance Routledge advanced texts in economics and finance Verhaltensökonomie (DE-588)7751254-6 gnd Kreditmarkt (DE-588)4073788-3 gnd |
subject_GND | (DE-588)7751254-6 (DE-588)4073788-3 |
title | Behavioural economics and finance |
title_auth | Behavioural economics and finance |
title_exact_search | Behavioural economics and finance |
title_full | Behavioural economics and finance Michelle Baddeley |
title_fullStr | Behavioural economics and finance Michelle Baddeley |
title_full_unstemmed | Behavioural economics and finance Michelle Baddeley |
title_short | Behavioural economics and finance |
title_sort | behavioural economics and finance |
topic | Verhaltensökonomie (DE-588)7751254-6 gnd Kreditmarkt (DE-588)4073788-3 gnd |
topic_facet | Verhaltensökonomie Kreditmarkt |
url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=024963420&sequence=000003&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=024963420&sequence=000004&line_number=0002&func_code=DB_RECORDS&service_type=MEDIA |
volume_link | (DE-604)BV037241432 |
work_keys_str_mv | AT baddeleymichelle behaviouraleconomicsandfinance |