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Behavioral Economics, 3rd Edition

Behavioral Economics, 3rd Edition PDF

Author: Edward Cartwright

Publisher: Routledge


Publish Date: January 25, 2018

ISBN-10: 1138097128

Pages: 586

File Type: Epub

Language: English

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Book Preface

The first edition of this book came about from teaching a course called ‘Strategy and games’ for first-year undergraduates. The idea of the course was to illustrate through classroom experiments some of the basic ideas of economics and game theory. In teaching that course my interest and knowledge of behavioral economics grew a lot; as did my frustration at the limited resources available to students wanting to learn more about this fascinating area of economics. Eventually, I decided it was time to write a book.

My basic objective when writing the book was to convey both the excitement and the importance of behavioral economics. I wanted to explain the basic principles, ideas and results of behavioral economics and show how fascinating they are. I also wanted to illustrate through applications why behavioral economics is fundamentally important in understanding the world around us. Finally, I wanted a book that was accessible to a general reader, not just those trained in economics and comfortable with algebra.

This third edition builds on the previous two. Behavioral economics is an evolving subject, and so there is always new material to add and updates to take note of. There are, for example, new sections on stochastic reference points and the relationship between risk and time preferences. New applications are also considered, including behavioral contract theory and bargaining in the family.

This book would not have been possible without those who have contributed to the literature on behavioral economics and given me such great material to work with. Particular thanks are due to those who made my job so easy by writing papers over many years that, when put together as a whole, gave very clear insights into economic behavior. I would also like to extend a sincere thanks to very many people who have given me useful feedback on the first two editions of the book. It is important to make clear, though, that the opinions expressed in this book are mine, and not necessarily those of the researchers whose work I refer to.

A lot of thanks is due to my wife, Anna, who has helped so much in writing this and the earlier editions of the book. On a personal level, she has been patient and supportive while I wrote them. On a practical level, she is my greatest critic, never happy until everything is explained as fully and clearly as possible; she is also a great source of new ideas and new ways of thinking about old ideas. I should also thank all the students and colleagues connected with the Strategy and Games course, for teaching me so much. Finally, I want to give a big thanks to Myrna Wooders, who, as well as being a fantastic person to know, has long been, and continues to be, a great inspiration and mentor.

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