Behavioral Economics Moving Forward
This book sets the agenda to turn behavioral economics, which has long been considered a subordinate discipline, into mainstream economics. Ghisellini and Chang expose the conceptual and empirical inadequacy of conventional economics using illustrations o
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FABRIZIO GHISELLINI AND BERYL Y. CHANG
Behavioral Economics
Fabrizio Ghisellini • Beryl Y. Chang
Behavioral Economics Moving Forward
Fabrizio Ghisellini Center for Monetary and Financial Studies LUISS University Rome, Italy
Beryl Y. Chang New York University New York, NY, USA
ISBN 978-3-319-75204-4 ISBN 978-3-319-75205-1 (eBook) https://doi.org/10.1007/978-3-319-75205-1 Library of Congress Control Number: 2018935144 © The Editor(s) (if applicable) and The Author(s) 2018 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Cover illustration: natbasil / Alamy Stock Vector Printed on acid-free paper This Palgrave Macmillan imprint is published by the registered company Springer International Publishing AG part of Springer Nature. The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
Preface
“Oh no! Yet another book on behavioral economics? Do we really need it?” This could plausibly be the knee-jerk reaction of a potential reader after picking up this book from the shelf of a bookshop. And on the surface, this impulsive reaction would be justified. In the last few years there has been a growing supply of books on the subject or referencing to it. Try inputting the keywords “behavioral economics” in the Amazon advanced book search tool, and you will get a clear upward publishing trend: 136 books in 2013, 181 in 2014, 200 in 2015, and 293 in 2016. So the burden of proof is on us. We have got to demonstrate that this book is not just one more of the same, but is different. In order to do so, let’s turn for a second to the mainstream contents that dominate the editorial supply. This is an important issue, as behavioral economics, being interdisciplinary and at the crossroad of economics and psychology, is an incredibly wide subject. Consider the best sellers first. The all-time top three books are the following
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