An Introduction to Behavioral Economics

Why is the return on stocks so much higher on average than the return on bonds? Why is a worker delighted to hear she is going to get a 10% raise in salary, and then furious to find out that a colleague is going to get 15%? Behavioral economics is one of the most influential and dynamic areas in economics today. Applying insights from psychological science to economic models in order to better understand economics decision making, the behavioral perspective has provided important new ways for economists to understand why people make the choices they do. An Introduction to Behavioral Economics provides a comprehensive overview of the field that assumes only an intermediate-level undergraduate economics background, making it an ideal core textbook for advanced undergraduate or master's degree courses in behavioral economics or related subjects. As a single-author text, it provides an ideal 'way in' to the subject and could serve as useful jumping-off point for explorations in the original research itself.

Table of Contents:
PART I: INTRODUCTION Nature Of Behavioral Economics PART II: FOUNDATIONS Values, Attitudes, Preferences and Choices Decision Making Under Risk and Uncertainty Mental Accounting PART III: INTERTEMPORAL CHOICE The Discounted Utility Model Alternative Intertemporal Choice Models PART IV: STRATEGIC INTERACTION Behavioral Game Theory Fairness and Social Preferences PART V: CONCLUSION Rationality The Future of Behavioral Economics

About the Author :
NICK WILKINSON is Associate Professor of Economics at Richmond University - The American International University, London, UK. As well as being an experienced university lecturer he has also worked in a variety of business and management roles including Director of Operations for Gymtech, New York. He is also author of Managerial Economics: A Problem-Solving Approach (CUP).

Review :
'This book provides a superb introduction to the field of behavioral economics, suitable not only as an introductory text, but also as an entry-point for those desiring an engaging overview of the field. By providing his own unique and interesting perspective on the material he reviews, Wilkinson succeeds at the difficult task of holding the reader's interest while providing remarkably comprehensive coverage. This book will help readers to share in the excitement of those currently working in the field.' - Professor George Loewenstein, Carnegie Mellon University, USA 'This is a wonderful book that manages to be very timely and up-to-date, balanced, readable, and teachable. This is a major achievement in describing a fast-moving and controversial approach to expanding the scope of economics into its proper psychological foundation.' - Professor Colin F. Camerer, California Institute of Technology, USA 'Nick Wilkinson has done a commendable job covering a large body of theoretical, experimental and empirical research. Any student would benefit from this up-to-date introduction to this blooming field. Even specialists in the area would gain much from this textbook, which offers an impressively complete synthesis of thirty years' worth of research at the intersection of psychology andeconomics.' -Professor Simon Gaechter, University of Nottingham, UK 'An increasing number of economists believe that the futuredirection of economics is inextricably linkedwith insights derived from psychology and sociology.This book provides a clear and comprehensive introduction to this endeavour that serves toilluminate, educate and open one's mind to the possibilities.It successfully conveys both the insights and the sense of excitement generated from this growing body of research, and deserves a prominent place on the shelves of all economists and other social scientists.' -Dr Sanjit Dhami, University of Leicester, UK