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Behavioural Economics and Experiments addresses key topics within behavioural economics, exploring vital questions around decision-making and human nature. Assuming no prior knowledge of economics, the book features wide-ranging examples from literature, film, sport, neuroscience and beyond.
Ananish Chaudhuri explores the complex relationships between human behaviour, society and decision-making, introducing readers to the latest work on heuristics, framing and anchoring, as well as ideas around fairness, trust and social norms. The book offers a fresh perspective on issues such as:
Decision-making under uncertainty
Firms' pricing decisions
Employment contracts
Coordination failures in organizations
Preventing bubbles in financial markets
This is an ideal introduction for students of behavioural economics, experimental economics and economic decision-making on economics, public policy, psychology and business-related programmes, and will also be accessible to policymakers and curious laymen.
Ananish Chaudhuri is Professor of Experimental Economics at the University of Auckland. He has taught at Harvard Kennedy School, Wellesley College, Rutgers University and Washington State University.
Preface 1. How we decide 2. Experiments in behavioural economics 3. Gut feelings and effortful thinking 4. Expected utility theory and prospect theory 5. Probabilistic thinking 6. Thinking strategically 7. The ultimatum game 8. Market implications of the ultimatum game 9. Trust and trustworthiness in everyday life 10. Trust and trustworthiness in markets 11. Cooperation in social dilemmas 12. The carrot or the stick: Sustaining cooperation in social dilemmas 13. I will if you will: Resolving coordination failures in organizations 14. Behavioural analyses of markets 15. Asset bubbles in markets References
