NotesFAQContact Us
Search Tips
Peer reviewed Peer reviewed
Direct linkDirect link
ERIC Number: EJ932878
Record Type: Journal
Publication Date: 2011
Pages: 15
Abstractor: As Provided
Reference Count: 42
ISSN: ISSN-0022-0485
Microeconomics and Psychology
Beckman, Steven; Chen, Lanxin; DeAngelo, Greg; Smith, W. James; Zhang, Xieting
Journal of Economic Education, v42 n3 p255-269 2011
Psychologists such as the Nobel Prize-winner Daniel Kahneman challenge the major assumptions of microeconomics: the rational pursuit of self-interest given unchanging tastes. One may explore these issues through a questionnaire that may be distributed in class. How many of your students behave as the psychologists predict? Should economists adapt their theories of the market to reflect their findings? Prospect theory, changes in reference points, fairness, framing effects, loss aversion, the ultimatum game, herding, context dependence, the dictator game, preference reversals and the structure of the human brain are all illustrated through simple questions. The body of this article connects the questions to the literature and introduces the debates between economists and psychologists. (Contains 2 figures and 11 notes.)
Routledge. Available from: Taylor & Francis, Ltd. 325 Chestnut Street Suite 800, Philadelphia, PA 19106. Tel: 800-354-1420; Fax: 215-625-2940; Web site:
Publication Type: Journal Articles; Reports - Descriptive
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A