An Introduction to Behavioral Economics / Edition 3

by Nick Wilkinson, Matthias Klaes

Overview

The third edition of this successful textbook is a comprehensive, rigorous survey of the major topics in the field of behavioral economics. Building on the strengths of the second edition, it offers an up-to-date and critical examination of the latest literature, research, developments and debates in the field. Offering an inter-disciplinary approach, the authors incorporate psychology, evolutionary biology and neuroscience into the discussions. And, ultimately, they consider what it means to be 'rational', why we so often indulge in 'irrational' and self-harming behavior, and also why 'irrational' behavior can sometimes serve us well.

A perfect book for economics students studying behavioural economics at higher undergraduate level or Master's level.

This new edition features:
- Extended material on heuristics and biases, and new material on neuroeconomics and its applications
- A wealth of new topical case studies, such as voting behavior in Brexit and the Trump election and the current obesity epidemic
- More examples and review questions to help cement understanding

Accompanying online resources for this title can be found at bloomsburyonlineresources.com/an-introduction-to-behavioral-economics. These resources are designed to support teaching and learning when using this textbook and are available at no extra cost.

Product Details

ISBN-13:	9781137524126
Publisher:	Bloomsbury Academic
Publication date:	12/27/2017
Edition description:	3rd ed. 2018
Pages:	600
Product dimensions:	7.65(w) x 10.25(h) x 1.55(d)

About the Author

Nick Wilkinson is Professor of Economics at Richmond the American International University in London and has taught economics and finance in various international institutions in the UK and USA. He has also worked in business management in both countries and served as a consultant to many companies, mainly in the leisure industry. He has authored two books, 'Managerial Economics: A Problem-Solving Approach', published by Cambridge University Press. His research interests lie in behavioral economics, particularly in the implications of evolutionary biology and neuroscience for behavioral economics.

Matthias Klaes is President of the Scottish Economic Society and Convener of the Scottish Centre for Economic Methodology. He has published widely in organisational and behavioral economics and finance, and regularly acts as an adviser to both private and public sector bodies. His current research focuses on the behavioral dimensions of online marketplaces and digital finance.
Nick Wilkinson is Professor of Economics at Richmond the American International University in London and has taught economics and finance in various international institutions in the UK and USA. He has also worked in business management in both countries and served as a consultant to many companies, mainly in the leisure industry. He has authored two books, 'Managerial Economics: A Problem-Solving Approach', published by Cambridge University Press. His research interests lie in behavioral economics, particularly in the implications of evolutionary biology and neuroscience for behavioral economics.

Matthias Klaes is President of the Scottish Economic Society and Convener of the Scottish Centre for Economic Methodology. He has published widely in organisational and behavioral economics and finance, and regularly acts as an adviser to both private and public sector bodies. His current research focuses on the behavioral dimensions of online marketplaces and digital finance.

Table of Contents

PART I: INTRODUCTION
1. Nature of Behavioral Economics
2. Methodology
PART II: FOUNDATIONS
3. Values, Preferences and Choices
4. Beliefs and Expectations
5. Decision-making under Risk and Uncertainty
6. Mental Accounting
PART III: INTERTEMPORAL CHOICE
7. The Discounted Utility Model
8. Alternative Intertemporal Choice Models
PART IV: STRATEGIC INTERACTION
9. Behavioral Game Theory
10. Social Preferences
PART V: CONCLUSION
11. Behavioral Economics: Summary and Outlook.

What People are Saying About This

From the Publisher

“With new material on neuroeconomics, as well as applications to current political and economic developments such as Brexit in the UK and polarization in the US, the third edition of An Introduction to Behavioral Economics expands, and brings up to date, this superb introduction to the field of behavioral economics. With their unique and interesting perspective, and engaging writing, the authors help readers share in the excitement of those currently working in the field.” (George Loewenstein, Carnegie Mellon University, USA)

“An Introduction to Behavioral Economics, by Nick Wilkinson and Matthias Klaes, is an excellent introduction to behavioural economics from the perspective of economic psychology and the determinants of choice behaviour, building on the tradition established by Daniel Kahneman and Amos Tversky. Moreover, Wilkinson and Klaes present behavioural economics in the context of economic theory thereby linking behavioural economic insights with contemporary economic theory. They also pay some attention to the sociology of choice which further enriches their presentation and insights. This is definitely a book that should be read by anyone interested in behavioural economics.” (Morris Altman, The University of Newcastle, Australia)

“A thoroughly updated third edition of this popular textbook which covers cutting-edge behavioural economics in a pleasingly engaging style. Students will appreciate the structure of chapters: after the Introduction to the field section, including the nature of behavioural economics and methodology, the Foundations section provides the fundamental groundwork, followed by Intertemporal Choice, and then Strategic Interaction, including game theory and social preferences, before the Conclusion ties everything together and considers the future of the field. Mathematics is used sparingly, and there are thoughtful pedagogic features that will aid learning. The breadth of coverage is impressive, ranging from evolutionary approaches, biology and neuroeconomics, to recent political events in the UK (Brexit) and elsewhere (e.g., the election of Donald Trump in the USA). This excellent textbook should inform and inspire students.” (Philip J. Corr, City, University of London, UK)

“The third edition provides a superbly accessible introduction to behavioural economics, whilst ensuring a detailed examination of the theories and research studies underpinning them. The text remains at the forefront of theoretical development, whilst providing topical and engaging applications to hold students’ attention.” (Piers Thompson, Nottingham Trent University, UK)

“This new edition of Wilkinson and Klaes’ excellent text is most welcome given my students’ very positive appraisal of the previous edition. The book’s strengths are its comprehensiveness, open approach to the issues behavioral economics raises, and methodology emphasis. Strongly recommended for advanced undergraduate and beginning graduate students.” (John B. Davis, Marquette University, USA, and University of Amsterdam, The Netherlands)

“By now An Introduction to Behavioral Economics is firmly established in the field of behavioral economics. It continues to be a premier textbook despite the recent appearance of several competitors. The academic rigor and depth of coverage are unmatched. It is also an invaluable reference for which you will reach again and again. The reader will particularly appreciate the discussions of the bridges between behavioral economics, experimental economics, neuroeconomics, and psychology. Concise and comprehensive, a-must-have for any behavioral economics scholar.” (Natalia V. Czap, University of Michigan-Dearborn, USA)

Editorial Reviews

With new material on neuroeconomics, as well as applications to current political and economic developments such as Brexit in the UK and polarization in the US, the third edition of An Introduction to Behavioral Economics expands, and brings up to date, this superb introduction to the field of behavioral economics. With their unique and interesting perspective, and engaging writing, the authors help readers share in the excitement of those currently working in the field.” —George Loewenstein, Carnegie Mellon University, USA

“An Introduction to Behavioral Economics, by Nick Wilkinson and Matthias Klaes, is an excellent introduction to behavioural economics from the perspective of economic psychology and the determinants of choice behaviour, building on the tradition established by Daniel Kahneman and Amos Tversky. Moreover, Wilkinson and Klaes present behavioural economics in the context of economic theory thereby linking behavioural economic insights with contemporary economic theory. They also pay some attention to the sociology of choice which further enriches their presentation and insights. This is definitely a book that should be read by anyone interested in behavioural economics.” —Morris Altman, The University of Newcastle, Australia

“A thoroughly updated third edition of this popular textbook which covers cutting-edge behavioural economics in a pleasingly engaging style. Students will appreciate the structure of chapters: after the Introduction to the field section, including the nature of behavioural economics and methodology, the Foundations section provides the fundamental groundwork, followed by Intertemporal Choice, and then Strategic Interaction, including game theory and social preferences, before the Conclusion ties everything together and considers the future of the field. Mathematics is used sparingly, and there are thoughtful pedagogic features that will aid learning. The breadth of coverage is impressive, ranging from evolutionary approaches, biology and neuroeconomics, to recent political events in the UK (Brexit) and elsewhere (e.g., the election of Donald Trump in the USA). This excellent textbook should inform and inspire students.” —Philip J. Corr, City, University of London, UK

“The third edition provides a superbly accessible introduction to behavioural economics, whilst ensuring a detailed examination of the theories and research studies underpinning them. The text remains at the forefront of theoretical development, whilst providing topical and engaging applications to hold students' attention.” —Piers Thompson, Nottingham Trent University, UK

“This new edition of Wilkinson and Klaes' excellent text is most welcome given my students' very positive appraisal of the previous edition. The book's strengths are its comprehensiveness, open approach to the issues behavioral economics raises, and methodology emphasis. Strongly recommended for advanced undergraduate and beginning graduate students.” —John B. Davis, Marquette University, USA, and University of Amsterdam, The Netherlands

“By now An Introduction to Behavioral Economics is firmly established in the field of behavioral economics. It continues to be a premier textbook despite the recent appearance of several competitors. The academic rigor and depth of coverage are unmatched. It is also an invaluable reference for which you will reach again and again. The reader will particularly appreciate the discussions of the bridges between behavioral economics, experimental economics, neuroeconomics, and psychology. Concise and comprehensive, a-must-have for any behavioral economics scholar.” —Natalia V. Czap, University of Michigan-Dearborn, USA

From the Publisher