From Imperialism to Inspiration: A Survey of Economics and Psychology

Bruno S. Frey

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Decision-Making and Behavioral Economics Economic Theory and Institutions Experimental Behavioral Economics Studies

Abstract

Economics and psychology are both sciences of human behaviour. This paper gives a survey of their interaction. First, the changing relationship between the two sciences isndiscussed: while economics was once imperialistic, it has become a science inspired by psychological insights. In order to illustrate this, recent developments and evidence for three major areas are presented: bounded rationality, non-selfish behaviour, and the economics of happiness.

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1975Belief, Attitude, Intention and Behavior: An Introduction to Theory and Research 1988Prospect theory: An analysis of decision under risk 1985Intrinsic Motivation and Self-Determination in Human Behavior 1992Governing the Commons: The Evolution of Institutions for Collective Action 1991A Treatise on the Family 1961Risk, Ambiguity, and the Savage Axioms 1999A meta-analytic review of experiments examining the effects of extrinsic rewards on intrinsic motivation.2002Time Discounting and Time Preference: A Critical Review

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