Anchoring: Introducing a Behavioral Economic Topic in Principles of Economics Courses

Abstract

Inquiry within the discipline of economics has undergone a renaissance over the past few years. Areas such as nonlinear dynamical (chaotic) systems and behavioral/experimental economics have offered many advances in economic theory and application (e.g., Ariely 2008, Kagel and Roth 1995, Ormerod 1997 and 2005, and Skyttner 2008). Much new research has shown that traditional theory is often inadequate for analyzing economic data (e.g., Ormerod 1997 and 2005). With the exception of public choice economics, most new topics have been largely ignored in economics principles textbooks.

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