Introduction to Behavioral

PART I INTRODUCTION 
CHAPTER 1 Nature of Behavioral Economics
1
CHAPTER 2 Methodology
28
PART II FOUNDATIONS
CHAPTER 3 Values, Preferences and Choices
62
CHAPTER 4 Beliefs, Heuristics and Biases
115
CHAPTER 5 Decision-making under Risk and Uncertainty
146
CHAPTER 6 Mental Accounting
218
PART III INTERTEMPORAL CHOICE 
CHAPTER 7 The Discounted Utility Model
260
CHAPTER 8 Alternative Intertemporal Choice Models
283
PART IV STRATEGIC INTERACTION 
CHAPTER 9 Behavioral Game Theory
334
CHAPTER 10 Social Preferences
391
PART V CONCLUSION 
CHAPTER 11 Behavioral Economics: Summary and Outlook
459
Bibliography
504
Index
559

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iv
Detailed Table of Contents
List of Figures
viii
List of Tables
ix
Preface
x
Acknowledgments 
xiii
PART I INTRODUCTION 
CHAPTER 1 Nature of Behavioral Economics
1.1
Behavioral economics and the standard model 
2
1.2
History and evolution of behavioral economics 
12
1.3
Relationship with other disciplines 
15
1.4
Objectives, scope and structure 
19
1.5
Summary
20
1.6
Review 
questions 
20
1.7
Applications 
20
Case 1.1
Loss aversion in monkeys 
21
Case 1.2
Money 
illusion 
23
Case 
1.3
Altruism – the joy of giving 
26
CHAPTER 2 Methodology
2.1
Theories 
29
2.2 
Evidence 
36
2.3 
Consilience 
45
2.4
Summary 
52
2.5
Review 
questions 
53
2.6
Applications 
53
Case 2.1
Do economists need brains? 
53
Case 2.2
Riots in the UK 
57