Book

The Psychology of Economic Decisions - Volume 2: Reasons and Choices

Psychologists have a long tradition of studying human behavior, strengths and weaknesses, biases and limitations. Economists have constructed normative frameworks that capture the most important elements of human decision-making and developed powerful tools to determine individual and strategic choices in a variety of situations. Only recently have their strengths been combined and economic models enriched with key ingredients found in psychological studies.

This volume covers four of the most important themes in this interdisciplinary field: feelings, inconsistencies, limitations and biases. Each chapter contributes to a more comprehensive and accurate modelling and description of human behavior. Its four parts cover: the origins, formation, and evolution of beliefs; consistency, commitment, and intertemporal separability of dynamic choices; attention, preference formation, and risk evaluation in limited cognition; and affective behaviour, specifically the role of emotions in decision making.

Citation

Carrillo, J and I Brocas (eds) (2004), ‘The Psychology of Economic Decisions - Volume 2: Reasons and Choices‘, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/psychology-economic-decisions-volume-2-reasons-and-choices

Citation

Carrillo, J and I Brocas, ‘Introduction: The Psychology of Economic Decisions - Volume 2: Reasons and Choices‘, in Carrillo, J and I Brocas (eds), The Psychology of Economic Decisions - Volume 2: Reasons and Choices, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/psychology-economic-decisions-volume-2-reasons-and-choices

Citation

Elster, J, ‘Costs and Constraints in the Economy o f the Mind‘, in Carrillo, J and I Brocas (eds), The Psychology of Economic Decisions - Volume 2: Reasons and Choices, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/psychology-economic-decisions-volume-2-reasons-and-choices

Citation

Wu, G and C Massey, ‘Understanding Under- and Over-reaction‘, in Carrillo, J and I Brocas (eds), The Psychology of Economic Decisions - Volume 2: Reasons and Choices, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/psychology-economic-decisions-volume-2-reasons-and-choices

Citation

Mellers, B and A McGraw, ‘Self-serving Beliefs and the Pleasure of Outcomes‘, in Carrillo, J and I Brocas (eds), The Psychology of Economic Decisions - Volume 2: Reasons and Choices, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/psychology-economic-decisions-volume-2-reasons-and-choices

Citation

Carrillo, J, M Dewatripont and I Brocas, ‘Commitment Devices under Self-control Problems: An Overview‘, in Carrillo, J and I Brocas (eds), The Psychology of Economic Decisions - Volume 2: Reasons and Choices, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/psychology-economic-decisions-volume-2-reasons-and-choices

Citation

Palacios-Huerta, I, ‘Consistent Intertemporal Decision-making through Memory and Anticipation‘, in Carrillo, J and I Brocas (eds), The Psychology of Economic Decisions - Volume 2: Reasons and Choices, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/psychology-economic-decisions-volume-2-reasons-and-choices

Citation

Starmer, C, R Sugden and R Cubitt, ‘Dynamic Decisions under Uncertainty: Some Recent Evidence from Economics and Psychology‘, in Carrillo, J and I Brocas (eds), The Psychology of Economic Decisions - Volume 2: Reasons and Choices, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/psychology-economic-decisions-volume-2-reasons-and-choices

Citation

Johnson, E and C Camerer, ‘Thinking about Attention in Games: Backward and Forward Induction‘, in Carrillo, J and I Brocas (eds), The Psychology of Economic Decisions - Volume 2: Reasons and Choices, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/psychology-economic-decisions-volume-2-reasons-and-choices

Citation

Loewenstein, G, D Prelec and D Ariely, ‘Arbitrarily Coherent Preferences‘, in Carrillo, J and I Brocas (eds), The Psychology of Economic Decisions - Volume 2: Reasons and Choices, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/psychology-economic-decisions-volume-2-reasons-and-choices

Citation

Weber, E, ‘Perception Matters: Psychophysics from Economists‘, in Carrillo, J and I Brocas (eds), The Psychology of Economic Decisions - Volume 2: Reasons and Choices, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/psychology-economic-decisions-volume-2-reasons-and-choices

Citation

Tykocinski, O and T Pittman, ‘The Dark side of Opportunity: Regret, Disappointment, and the Costs of Prospects‘, in Carrillo, J and I Brocas (eds), The Psychology of Economic Decisions - Volume 2: Reasons and Choices, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/psychology-economic-decisions-volume-2-reasons-and-choices

Citation

Erber, R, J Poe and M Erber, ‘Mood Regulation and Decision-making: Is Irrational Exuberance Really a Problem?‘, in Carrillo, J and I Brocas (eds), The Psychology of Economic Decisions - Volume 2: Reasons and Choices, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/psychology-economic-decisions-volume-2-reasons-and-choices

Citation

Koehler, J, ‘What Chance was Lost? The Psychology of Damage Awards under the Loss of Change Doctrine‘, in Carrillo, J and I Brocas (eds), The Psychology of Economic Decisions - Volume 2: Reasons and Choices, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/psychology-economic-decisions-volume-2-reasons-and-choices