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Psychology and Economics: Evidence from the Field. Part III. Nonstandard Decision Making and Market Response

Stefano DellaVigna ()


Abstract: This third, and the last, part of a larger work devoted to the modern behavioral economics considers nonstandard decision making that is influenced by inattention of economic agents, their preference toward familiar schemes of action, biases and confusion in the choice situations, outside (in particular, social) pressure. Besides, market response to nonstandard behavior in various economic contexts (industrial organization, labor market, financial market, voting) is analyzed. The author also speculates on the future of behavioral economics as a separate discipline.

Date: 2011
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