Principles of Behavioral Economics
Microeconomics and Human Behavior

The definitive, most comprehensive, introduction to behavioral and experimental economics that defines the field at the undergraduate level.

Sanjit Dhami (Author)

9781009422291, Cambridge University Press

Paperback / softback, published 16 January 2025

698 pages
25.3 x 20.3 x 3.8 cm, 1.46 kg

'This is an outstanding undergraduate textbook in behavioral economics. It not only highlights key results in the field but also conveys the excitement of our ongoing quest to make economics truer. I highly recommend it to all.' Xavier Gabaix, Pershing Square Professor of Economics and Finance, Harvard University

Principles of Behavioral Economics, written by an acknowledged leader in the field, provides a comprehensive introduction to one of the most exciting areas of modern economics. It demonstrates how models of economic theory can be enriched by using interdisciplinary insights from psychology, sociology, evolutionary biology, and neuroscience to build the basis for a more empirically supported set of economic principles. Unique in its level of rigor and lucidity, the book highlights the important link between theoretical and empirical economics by demonstrating the usefulness of a range of data sources such as observational data, lab data, survey data, and neuroeconomic data. This field-defining textbook argues that behavioral economics is not just a supplement to mainstream economics. Taking behavioral economics seriously requires a total rethink, and eventual transformation, of every area of economics.

Part I. Behavioral Decision Theory: 1. The traditional approach to decision making under risk and subjective uncertainty
2. Modern approaches to decision making under risk and subjective uncertainty
Part II. Other Regarding Preferences: 3. Evidence on human pro-sociality, morality, and ethics
4. Theory and applications of pro-social behaviour
Part III. Behavioral Time Discounting: 5. The traditional approach to time preferences
6. Behavioral approaches to time preferences
Part IV. Behavioral Game Theory
7. Introduction to behavioral game theory
8. Topics in behavioral game theory
Part V. Bounded Rationality: 9. Bounded rationality I: judgement heuristics
10. Bounded rationality II: topics in bounded rationality
Part VI. Further Topics in Behavioral Economics: 11. A smorgasbord of topics in behavioral economics
12. Behavioral welfare economics.

Subject Areas: Microeconomics [KCC]