Real-World Decision Making: an Encyclopedia of Behavioral Economics: An Encyclopedia of Behavioral Economics

The first and only encyclopedia to focus on the economic and financial behaviors of consumers, investors, and organizations, including an exploration of how people make good—and bad—economic decisions. Traditional economic theories speculate how and when people should spend money. But consumers don't always behave as expected and often adopt strategies that might appear unorthodox yet are, at times, more effective than the rule prescribed by conventional wisdom. This groundbreaking text examines the ways in which people make financial decisions, whether it is because they are smart but atypical in their choices … or just irrational decision makers. A leading authority on behavioral economics, Morris Altman and more than 150 expert contributors delve into key concepts in behavioral economics, economic psychology, behavioral finance, neuroeconomics, experimental economics, and institutional economics to help inform economic models based on reality, not theory. Through 250 informative entries, the book explores various aspects of the subject including decision making, economic analysis, and public policy. In addition to introducing concepts to readers new to the subject, the book sheds light on more advanced financial topics in a manner that is objective, comprehensive, and accessible. Contains an informative introductory essay that familiarizes students with the various aspects of behavioral economics Provides a list of additional readings for those interested in learning more about the topic Includes cross-references in each entry to help readers make connections between related topics Defines key terms that are likely to be unfamiliar to those without advance knowledge of the subject Helps readers identify and study particular entry categories through accompanying Topic Finders "The main point of this encyclopedia is to provide a comprehensive set of definitions and explanations of key concepts in behavioral economics provided by respected researchers. Written by those who are publishing in the field, the encyclopedia entries are rigorous, timely, and up-to-date. For those interested in the increasingly important area of behavioral economics and the related fields of economic psychology, and institutional, evolutionary, and experimental economics, this volume provides conceptual clarifications and insights. Moreover, the various entries are largely written in plain English to be easily understandable to scholars from across the disciplinary divide, students at different stages of their education, as well to public policy experts, journalists, politicians, and members of the general public. All entries include references for those interested in venturing further into the realm of behavioral economics."--Préface "The main point of this encyclopedia is to provide a comprehensive set of definitions and explanations of key concepts in behavioral economics provided by respected researchers. Written by those who are publishing in the field, the encyclopedia entries are rigorous, timely, and up-to-date. For those interested in the increasingly important area of behavioral economics and the related fields of economic psychology, and institutional, evolutionary, and experimental economics, this volume provides conceptual clarifications and insights. Moreover, the various entries are largely written in plain English to be easily understandable to scholars from across the disciplinary divide, students at different stages of their education, as well to public policy experts, journalists, politicians, and members of the general public. All entries include references for those interested in venturing further into the realm of behavioral economics."--Preface