Literature of Behavioral Economics, Part 1: Introduction and Books

Abstract

Behavioral economics, a blend of cognitive psychology and economics, is a new field that has attracted much attention, both from economists and from the general public. Behavioral economists have won Nobel Prizes and written books that became New York Times bestsellers. Unlike traditional economists, whose models are based on a perfect “rational man,” behavioral economists study ways that people actually make decisions and incorporate those findings into economic theory. This article presents an overview and history of the development of behavioral economics and a selective annotated bibliography of books in the field.

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