Read e-book online Economics and psychology PDF

By Bruno S. Frey, Alois Stutzer

The mixing of economics and psychology has created a colourful and fruitful rising box of analysis. The essays in Economics and Psychology take a wide view of the interface among those disciplines, going past the standard specialize in "behavioral economics." As documented during this quantity, the impact of psychology on economics has been accountable for a view of human habit that calls into query the belief of whole rationality (and increases the opportunity of altruistic acts), the attractiveness of experiments as a sound approach to monetary learn, and the concept that software or overall healthiness could be measured. The participants, all major researchers within the box, provide state of the art discussions of such themes as pro-social habit and the function of conditional cooperation and belief, happiness examine as an empirical device, the opportunity of neuroeconomics in order to deepen realizing of person choice making, and procedural application as an idea that captures the wellbeing and fitness humans derive without delay from the methods and stipulations resulting in results. Taken jointly, the essays in Economics and Psychology supply an evaluate of the place this new interdisciplinary box stands and what instructions are such a lot promising for destiny learn, supplying an invaluable consultant for economists, psychologists, and social scientists.

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I believe that this sort of preference heterogeneity helps us better understand important phenomena in the field, like tax morale and attitudes toward the welfare state. Since, if many people are conditional cooperators, beliefs about others’ behavior are highly relevant for voluntary cooperation, policy should not only take into account the incentive effects on an individual’s behavior, but also how policy affects the beliefs and behavior of the majority of citizens, who are conditional cooperators.

3 Connections between the Lab and the Field To gather information about the connection between lab and field behavior, the subjects in Benz and Meier (2005) took part in a lab experiment where they made a donation decision. The same subjects were observed in a naturally occurring environment—the donation decisions to two student support funds as described above and analyzed by Frey and Meier (2004). In one experiment ðn ¼ 99Þ, called ‘‘social funds,’’ the donation was to exactly the same funds as in the naturally occurring situation; in a second experiment ðn ¼ 83Þ, called ‘‘charities,’’ the donation was to another charity unrelated to the university.

The four models will also help me guide my discussion of consequences for public policy and management. 3 Four Consequences of Conditional Cooperation and Preference Heterogeneity I will present four experiments in this section that test four implications of conditional cooperation and preference heterogeneity in general. The testable consequences are that (1) in groups where group members are randomly selected voluntary cooperation is fragile; (2) there 30 Simon Ga¨chter are group interaction effects, meaning that people adapt their cooperation behavior to the relevant group they belong to; (3) group composition matters—in groups composed of like-minded types (groups composed of either cooperators or free riders) we should see starkly different cooperation patterns; and (4) belief management matters—in other words, factors that shift the belief about how much others contribute will influence contribution behavior.

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