Behavioral Public Sector Economics
Abstract
Chapter 25 discusses the challenges that behavioral researchers have posed for mainstream economic theory in the form of widespread anomalous behavior by individuals that appears to be counter to their self-interest. The anomalies include present biased preferences, social preferences, and susceptibility to framing effects. Highlighted are Kahneman and Tverski's Prospect Theory, Laibson's quasi-hyperbolic discounting, the Mullainatihan, Schwartzsteri, and Congdon model for analyzing behavioral anomalies and policy nudges, and the Bernheim and Rangel prescription for reconciling behavioral anomalies and mainstream theory.
Keywords
Behavioral anomalies; Behavioral economics; Framing effects; Nudges; ...Get Public Finance, 3rd Edition now with the O’Reilly learning platform.
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