Aggregate effects of behavioral anomalies: A new research area

Bruno Frey and Jana Gallus

Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), 2014, vol. 8, No 2014-18, 15 pages

Abstract: Much recent research in economics focuses on exploring behavioral anomalies, i.e., systematic deviations from the assumptions of the rationally self-interested model of man. Laboratory studies are used to identify seeming inconsistencies with micro-economic theory on the level of individuals. Since economics is a social science, this article proposes that the next crucial step consists in shifting the focus to the macro-level. It examines the process through which behavioral anomalies are aggregated to a societal outcome. Since individuals are reactive when they interact with others and face institutional constraints, the aggregation process may lead to different outcomes than what has been observed in individual-level studies: the respective anomalies may disappear, or they may become stronger on the macro-level. The discussion demonstrates that there are a great number of aspects to be analyzed. The paper presents fragments of what could become a more extensive field of research.

Keywords: Economics and psychology; behavioral economics; behavioral anomalies; reactivity (search for similar items in EconPapers)
JEL-codes: A10 B00 D70 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (2)

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http://dx.doi.org/10.5018/economics-ejournal.ja.2014-18
https://www.econstor.eu/bitstream/10419/97028/1/782791026.pdf (application/pdf)

Related works:
Working Paper: Aggregate effects of behavioral anomalies: A new research area (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifweej:201418

DOI: 10.5018/economics-ejournal.ja.2014-18

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