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
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