Skip to Main Content
Managerial Economics and Strategy, 2/e
book

Managerial Economics and Strategy, 2/e

by Jeffrey M. Perloff, James A. Brander
February 2016
Beginner to intermediate content levelBeginner to intermediate
500 pages
33h 40m
English
Pearson
Content preview from Managerial Economics and Strategy, 2/e

4.6 Behavioral Economics

So far, we have assumed that consumers are rational, maximizing individuals. A new field of study, behavioral economics, adds insights from psychology and empirical research on human cognitive and emotional biases to the rational economic model to better predict economic decision making.8 We discuss three applications of behavioral economics in this section: tests of transitivity, the endowment effect, and salience. Later in this book, we examine the psychology of decision making in networks (Chapter 9), strategic interactions (Chapter 13), and under uncertainty (Chapter 14).

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Managerial Economics

Managerial Economics

Vanita Agarwal
Managerial Economics

Managerial Economics

Donald N. Stengel
Principles of Managerial Finance, 15th Edition

Principles of Managerial Finance, 15th Edition

Scott B. Smart, Chad J. Zutter, Lawrence J. Gitman

Publisher Resources

ISBN: 9780134472553