Behavioral economics: Past, present, and future

Revista de Economía Institucional

View Publication Info
 
 
Field Value
 
Title Behavioral economics: Past, present, and future
Economía del comportamiento: pasado, presente y futuro
Economia do comportamento: passado, presente e futuro
 
Creator Thaler, Richard H.
 
Subject behavioral economics
human behavior
normative models
descriptive models
supposedly irrelevant factors
economía del comportamiento
comportamiento humano
modelos normativos
modelos descriptivos
factores supuestamente irrelevantes
economia do comportamento
comportamento humano
modelos normativos
modelos descritivos
fatores supostamente irrelevantes
 
Description “Behavioral economics” attempts to incorporate insights from other social sciences, especially psychology, in order to enrich the standard economic model. The interest in the psychology of human behavior returns economics to its earliest roots. Adam Smith talked about such key concepts as loss aversion, overconfidence, and self-control. Nevertheless, the modern version of behavioral economics introduced in the 1980s met with resistance by some economists, who preferred to retain the standard neo-classical model. They introduced several arguments for why psychology could safely be ignored. In this essay I show that these arguments have been rejected, both theoretically and empirically, so it is time to move on. The new approach should include two different kinds of theories: normative models that characterize the optimal solution to specific problems and descriptive models that capture how humans actually behave. The latter theories will incorporate some variables I call supposedly irrelevant factors, which can improve the explanatory power of economic models.
La “economía del comportamiento” intenta incorporar ideas de otras ciencias sociales, en especial de la psicología, para enriquecer el modelo estándar. El interés en la psicología del comportamiento humano es un retorno de la economía a sus orígenes. Adam Smith aludió a conceptos clave como la aversión a la pérdida, el exceso de confianza y el autocontrol. La economía del comportamiento encontró resistencia entre economistas que preferían mantener el modelo neoclásico estándar y argumentaban que la psicología se podía ignorar. Este ensayo muestra que esos argumentos han sido rechazados teórica y empíricamente, y que se deber seguir adelante. El nuevo enfoque debería incluir dos tipos de teorías: modelos normativos que caractericen la solución óptima de problemas específicos y modelos descriptivos que capten el comportamiento humano real. Estos últimos incorporarán variables llamadas factores supuestamente irrelevantes, que ayudarán a mejorar el poder explicativo de los modelos económicos.
A “economia do comportamento” tenta incorporar ideias de outras ciências sociais, especialmente da psicologia, para enriquecer o modelo padrão. O interesse pela psicologia do comportamento humano é um retorno da economia a suas origens. Adam Smith mencionou conceitos-chaves como a aversão à perda, o excesso de confiança e o autocontrole. A economia do comportamento encontrou resistência entre economistas que preferiam manter o modelo neoclássico padrão e argumentavam que a psicologia podia ser ignorada. Este artigo mostra que esses argumentos foram rejeitados teórica e empiricamente e que se deve seguir em frente. O novo enfoque deveria incluir dois tipos de teorias: modelos normativos que caracterizem a solução ideal a problemas específicos e modelos descritivos que captem o comportamento humano real. Estes últimos incorporarão variáveis chamadas fatores supostamente irrelevantes, que ajudarão a melhorar o poder explicativo dos modelos econômicos.
 
Publisher Universidad Externado de Colombia
 
Date 2018-04-04
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
 
Format application/pdf
application/xml
text/html
 
Identifier https://revistas.uexternado.edu.co/index.php/ecoins/article/view/5271
10.18601/01245996.v20n38.02
 
Source Revista de Economía Institucional; Vol. 20 Núm. 38 (2018): Enero-Junio; 9-43
Revista de Economía Institucional; Vol 20 No 38 (2018): January-June; 9-43
Revista de Economía Institucional; v. 20 n. 38 (2018): Enero-Junio; 9-43
2346-2450
0124-5996
 
Language spa
 
Relation /*ref*/Arrow, K. J. (1986). Rationality of self and others in an economic system. Journal of Business, 59(4), S385-S399.
/*ref*/Ashraf, N. C. et al. (2005). Adam Smith, behavioral economist. Journal of Economic Perspectives, 19(3), 131-145.
/*ref*/Atkinson, A. B. et al. (2011). Top incomes in the long run of history. Journal of Economic Literature, 49(1), 3-71.
/*ref*/Barberis, N. y Thaler, R. H. (2003). A survey of behavioral finance. Handbook of the Economics of Finance. Vol. 1, parte B, 1053-1123.
/*ref*/Benartzi, S. y Thaler, R. H. (2013). Behavioral economics and the retirement savings crisis. Science, 339(6124), 1152-1153.
/*ref*/Ben-David, I., Graham, J. R. et al. (2013). Managerial miscalibration. Quarterly Journal of Economics, 128(4), 1547-1584.
/*ref*/Black, F. (1986). Noise. Journal of Finance, 41(3), 529-543.
/*ref*/Camerer, C. (1997). Labor supply of New York City cabdrivers: One day at a time. Quarterly Journal of Economics, 112(2), 407-441.
/*ref*/Card, D., Heining, J. et al. (2013). Workplace heterogeneity and the rise of West German wage inequality. Quarterly Journal of Economics, 128(3), 967-1015.
/*ref*/Case, K. E., Shiller, R. J. et al. (2012). What have they been thinking? Home buyer behavior in hot and cold markets. NBER working paper, 18400.
/*ref*/Chetty, R. (2015). Behavioral economics and public policy: A pragmatic perspective. American Economic Review, 105(5), 1-33.
/*ref*/Chetty, R., Friedman, J. N. et al. (2014). Active vs. passive decisions and crowd-out in retirement savings accounts: Evidence from Denmark. Quarterly Journal of Economics, 129(3), 1141-1219.
/*ref*/Clark, J. M. (1918). Economics and modern psychology: I and II. Journal of Political Economy, 26(1), 1-30.
/*ref*/Crawford, V. P. y Meng, J. (2011). New York City cab drivers’ labor supply revisited: Reference-dependent preferences with rational-expectations targets for hours and income. American Economic Review, 101(5), 1912-1932.
/*ref*/De Bondt, W. F. y Thaler, R. H. (1985). Does the stock market overreact? Journal of Finance, 40(3), 793-805.
/*ref*/De Bondt, W. F. y Thaler, R. H. (1987). Further evidence on investor overreaction and stock market seasonality. Journal of Finance, 42(3), 557-581.
/*ref*/DellaVigna, S. y Malmendier, U. (2006). Paying not to go to the gym. American Economic Review, 96(3), 694-719.
/*ref*/Dickens, W. T. y Katz, L. F. (1986). Interindustry wage differences and industry characteristics. NBER working paper, 2014.
/*ref*/Fama, E. F. y French, K. R. (1993). Common risk factors in the returns on stock and bonds. Journal of Financial Economics, 33(1), 3-56.
/*ref*/Farber, H. S. (2015). Why you can’t find a taxi in the rain and other labor supply lessons from cab drivers. Quarterly Journal of Economics, 130(4), 1975-2026.
/*ref*/Fehr, E. y Schmidt, K. M. (1999). A theory of fairness, competition, and cooperation. Quarterly Journal of Economics, 114(3), 817-868.
/*ref*/Fisher, I. (1930). The theory of interest: As determined by impatience to spend income and opportunity to invest it. Nueva York: MacMillan.
/*ref*/Friedman, M. (1953). The methodology of positive economics. En M. Friedman (ed.), Essays in positive economics (pp. 3-43). Chicago: University of Chicago Press.
/*ref*/Fudenberg, D. y Levine, D. K. (2006). A dual self-model of impulse control. Harvard Institute of Economic Research, working paper 2112.
/*ref*/Graham, B. (1973). The intelligent investor. A book of practical counsel. Nueva York: Harper & Row.
/*ref*/Grether, D. M. y Plott, C. R. (1979). Economic theory of choice and the preference reversal phenomenon. American Economic Review, 69(4), 623-638.
/*ref*/Hamermesh, D. S. (2013). Six decades of top economics publishing: Who and how? Journal of Economic Literature, 51(1), 162-172.
/*ref*/Hogarth, R. M. y Reder, M. W. (1986). The behavioral foundations of economic theory. Journal of Business, 59(4), S181-S505.
/*ref*/Hogarth, R. M. y Reder, M. W. (1987). Rational choice: The contrast between economics and psychology. Chicago: University of Chicago Press.
/*ref*/Jensen, M. C. (1968). The performance of mutual funds in the period 1945-1964. Journal of Finance, 23(2), 389-416.
/*ref*/Kahneman, D. y Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263-291.
/*ref*/Kaplan, S. N., Klebanov, M. M. et al. (2012). Which CEO characteristics and abilities matter? Journal of Finance, 67(3), 973-1007.
/*ref*/Katona, G. (1951). Psychological analysis of economic behavior. Nueva York: McGraw-Hill.
/*ref*/Katona, G. (1953). Rational behavior and economic behavior. Psychological Review, 60(5), 307-318.
/*ref*/Keynes, J. M. (1936). The general theory of employment, interest, and money. Londres: Macmillan.
/*ref*/Krueger, A. B. y Summers, L. H. (1988). Efficiency wages and the inter-industry wage structure. Econometrica, 56(2), 259-293.
/*ref*/Laibson, D. (1997). Golden eggs and hyperbolic discounting. Quarterly Journal of Economics, 112(2), 443-477.
/*ref*/Lakonishok, J., Shleifer, A. et al. (1994). Contrarian investment, extrapolation, and risk. Journal of Finance, 49(5), 1541-1578.
/*ref*/Lamont, O. A. y Thaler, R. H. (2003a). Anomalies: The law of one price in financial markets. Journal of Economic Perspectives, 17(4), 191-202.
/*ref*/Lamont, O. A. y Thaler, R. H. (2003b). Can the market add and subtract? Mispricing in tech stock carve-outs. Journal of Political Economy, 111(2), 227-268.
/*ref*/Lester, R. A. (1946). Shortcomings of marginal analysis for wage-employment problems. American Economic Review, 36(1), 63-82
/*ref*/Lichtenstein, S. y Slovic, P. (1971). Reversals of preference between bids and choices in gambling decisions. Journal of Experimental Psychology, 89(1), 46-55.
/*ref*/Lichtenstein, S. y Slovic, P. (1973). Response-induced reversals of preference in gambling: An extended replication in Las Vegas. Journal of Experimental Psychology, 101(1), 16-20.
/*ref*/Loewenstein, G. (1992). The fall and rise of psychological explanations in the economics of intertemporal choice. En G. Loewenstein y J. Elster (eds.), Choice over time (pp. 3-34). Nueva York: Russell Sage Foundation.
/*ref*/Lucas, R. E. Jr. (1976). Econometric policy evaluation: A critique. Carnegie-Rochester Conference Series on Public Policy, 1, 19-46.
/*ref*/Machlup, F. (1946). Marginal analysis and empirical research. American Economic Review, 36(4), 519-554.
/*ref*/Madrian, B. C. y Shea, D. F. (2001). The power of suggestion: Inertia in 401(k) participation and savings behavior. Quarterly Journal of Economics, 116(4), 1149-1187.
/*ref*/Mehra, R. y Prescott, E. C. (1985). The equity premium: A puzzle. Journal of Monetary Economics, 15(2), 145-161.
/*ref*/Mishel, L. y Davis, A. (2015). Top CEOs make 300 times more than typical workers. Economic Policy Institute, Issue Brief 399, [http://www.epi.org/files/2015/top-ceos-make-300-times-more-than-typical-workers.pdf].
/*ref*/Muth, J. F. (1961). Rational expectations and the theory of price movements. Econometrica, 29(3), 315-335.
/*ref*/O’Donoghue, T. y Rabin, M. (1999). Procrastination in preparing for retirement. H. J. Aaron (ed.), Behavioral dimensions of retirement economics (pp. 125-156). Washington DC: Brookings Institution.
/*ref*/Pareto, V. (2014). Manual of political economy: A critical and variorum translation edition. En A. Montesano, A. Zanni et al. (eds.), Economic equilibrium (pp. 173-190). Oxford, UK: Oxford University Press.
/*ref*/Pigou, A. C. (1920). The economics of welfare. [http://oll. libertyfund. org/title/1410].
/*ref*/Piketty, T. (2014). Capital in the twenty-first century. Cambridge, Mass.: Harvard University Press.
/*ref*/Rabin, M. (1993). Incorporating fairness into game theory and economics. American Economic Review, 83(5), 1281-1302.
/*ref*/Rabin, M. (2013). An approach to incorporating psychology into economics. American Economic Review, 103(3), 617-622.
/*ref*/Schelling, T. C. (1984). Self-command in practice, in policy, and in a theory of rational choice. American Economic Review, 74(2), 1-11.
/*ref*/Shiller, R. J. (1984). Stock prices and social dynamics. Brookings Institution Press, 1984(2), 457-510.
/*ref*/Simon, H. A. (1955). A behavioral model of rational choice. Quarterly Journal of Economics, 69(1), 99-118.
/*ref*/Simon, H. A. (1957). Models of man: Social and rational. Mathematical essays on rational human behavior in a social setting. Oxford, UK: Wiley.
/*ref*/Simon, H. A. (1987). Behavioural economics. En J. Eatwell, M. Milgate et al. (eds.), The new Palgrave: A dictionary of economics. Londres: Palgrave Macmillan.
/*ref*/Slichter, S. H. (1950). Notes on the structure of wages. Review of Economics and Statistics, 32(1), 80-91.
/*ref*/Smith, A. (1981). The theory of moral sentiments [1759]. Indianapolis: Liberty Classics.
/*ref*/Smith, A. (1981). An inquiry into the nature and causes of the wealth of nations [1776]. Indianapolis: Liberty Classics.
/*ref*/Strotz, R. H. (1955). Myopia and inconsistency in dynamic utility maximization. Review of Economic Studies, 23(3), 165-180.
/*ref*/Thaler, R. H. (1980). Toward a positive theory of consumer choice. Journal of Economic Behavior & Organization, 1(1), 39-60.
/*ref*/Thaler, R. H. (1989). Interindustry wage differentials. Journal of Economic Perspectives, 3(2), 181-193.
/*ref*/Thaler, R. H. (2015). Misbehaving: The making of behavioral economics. Nueva York: W. W. Norton & Company.
/*ref*/Thaler, R. H. y Shlomo, B. (2004). Save more tomorrow: Using behavioral economics to increase employee saving. Journal of Political Economy, 112(1), S164-S187.
/*ref*/Thaler, R. H. y Shefrin, H. M. (1981). An economic theory of self-control. Journal of Political Economy, 89(2), 392-406.
/*ref*/Tversky, A. y Kahneman, D. (1974). Judgment under uncertainty: Heuristics and biases. Science, 185(4157), 1124-1131.
/*ref*/Van den Assem, M. J., Van Dolder, D. et al. (2012). Split or steal? Cooperative behavior when the stakes are large. Management Science, 58(1), 2-20.
/*ref*/Von Neumann, J. y Morgenstern, O. (1947). Theory of games and economic behavior. Princeton: Princeton University Press.
/*ref*/Vulkan, N. (2000). An economist’s perspective on probability matching. Journal of Economic Surveys, 14(1), 101-118.
https://revistas.uexternado.edu.co/index.php/ecoins/article/view/5271/6402
https://revistas.uexternado.edu.co/index.php/ecoins/article/view/5271/6763
https://revistas.uexternado.edu.co/index.php/ecoins/article/view/5271/6948
 

Contact Us

The PKP Index is an initiative of the Public Knowledge Project.

For PKP Publishing Services please use the PKP|PS contact form.

For support with PKP software we encourage users to consult our wiki for documentation and search our support forums.

For any other correspondence feel free to contact us using the PKP contact form.

Find Us

Twitter

Copyright © 2015-2018 Simon Fraser University Library