Econometrica: Journal of the Econometric Society, 47, 263–291. Research Paper Topics on Behavioral Economics. Good behavioral economics topics cover subjects such as bounded rationality, irrational exuberance, and choice architecture. In the case of vaccination, nudging people to get vaccinated go hand in hand with the opinion that getting vaccinated is in line with the beneﬁt of society and, thus, the desirable behavior. The scandals showed the inadequacy of traditional approaches to business ethics which, up until then, had largely focused on what people should do as well as which principles, virtues, and values should guide their decisions. Strategic reasoning. Prospect theory: An analysis of decision under risk. We need to do better – and that is what we have been trying to do in a series of publications (De Grauwe 2012, De Grauwe and Corrado 2015, De Grauwe and Ji 2016, 2017a). Review of Philosophy and Psychology, 6, 511–529. New York: Farrar, Straus and Giroux. Using empirical tools, behavioral ethics shows people have psychological biases (such as loss aversion), limited cognitive resources, and care about other values (such as fairness), which can weaken their utility maximization behavior. A second type of norms, so-called descriptive norms, provides information about the prevalence of different behaviors within a society. Furthermore, changing behavior through nudging is clearly linked to the values associated with the different behavior options. For instance, after several clinics in Germany violated rules and procedure for fairly allocating human organs to patients in 2010, several relatives of potential donors withdrew their approval to donate the potential donor’s organs and on a societal level the amount of donated organs continuously decreased. Does some combination of market forces, learning and evolution render these human qualities irrelevant? In the clean environment, the absence of litter described that no littering was the norm. Fair is not fair everywhere. ID w20609. Drawing the attention of individuals to existing descriptive norms, thus, increases the overall norm-conforming behavior. This standard economic assumption would result in the predictions that the responder should accept any offer that leaves him or her with an amount larger than zero. Rejecting the offer results in a payoff of zero for both players. Proposers seem to anticipate this behavior and typically send amounts that are larger than minimal. This effect was even stronger, when the participants’ awareness was drawn to the prevailing littering or no-littering norm by seeing a person who littered in the clean versus fully littered environment. 3). There is a wide range of behavioral economics papers generally. Working Papers. QUALITATIVE RESEARCH THROUGH A BEHAVIORAL ECONOMIC LENS PAGE 2 2017 Kant Halth www.antarhe. Behavioral Economics, Classical Economics, Public Policy, Politics and … Similarly, one of the key variables in human economic decision-making, namely, risk preference, varies not only between individuals but also between countries and cultures. We would always make optimal decisions. Thaler, Richard H. 1986. 1986. Past Behavioral Science Conferences: 2014, 2013, 2011, 2010, 2009. People are generally more lenient on Company X in the second case, where Company Y raised the price, despite equal outcomes in both situations and the fact that Company X sold the drug knowing the price would increase. Kahneman, D. (2011). The results showed that, overall, individuals littered more in environments that were full of litter compared to environments that were clean. Measuring Information Preferences (with Emily H. Ho and David Hagmann). Individuals make economic decisions for a variety of reasons and as a result of numerous factors. In the 1976 book The Economic Approach to Human Behavior, the economist Gary S. Becker famously outlined a number of ideas known as the pillars of so-called ‘rational c… For example, they are risk averse in choices involving sure gains and risk seeking in choices involving sure losses. "Fairness and the Assumptions of Economics," Journal of Business 59(4): S285-300. We begin with … Messick, D. M., & Tenbrunsel, A. E. (1996). Priority will be given to field experiments, as opposed to lab experiments. However, bioethics scholars have been slower to adopt behavioral ethics concepts. The current hot topics for a research paper in behavioral economics are: Social preferences and moral behaviour. Bolton, G. E., & Ockenfels, A. Psychological Bulletin, 119, 3–22. 2014). It is concerned with the psychological basis of the economic behaviors of individuals, and the impacts of economic processes on individuals' psychology. Knowledge of experimental economics generally, and the behavioral bias, heterogenous agents model, asset pricing and decision making in the financial market in particular Ability to conduct independent economic research and assume responsibility for the development and completion of research papers Scholars such as Adam Smith talked about such key concepts as loss aversion, overconfidence, and self-control. Further study is needed on the intersections of bioethics and behavioral ethics to better understand the implications and impact each ﬁeld can have on the other. On a large scale, this may result in impactful societal effects. Downloadable (with restrictions)! The cultural variation in attitudes toward fairness and risk preference may critically determine which outcomes behavioral interventions may foster in different cultures. 1. Financial markets have greater arbitrage opportunities than other markets, so behavioral factors might be thought to be less important here, but we show that even here the limits of arbitrage create anomalies that the psychology of decision making helps explain. In addition to working papers, the NBER disseminates affiliates’ latest findings through a range of free periodicals — the NBER Reporter, the NBER Digest, the Bulletin on Retirement and Disability, and the Bulletin on Health — as well as online conference reports, video lectures, and interviews. Nevertheless, the modern version of behavioral economics introduced in the 1980s met with resistance by some economists, … Recent research in behavioral psychology First and foremost, they recognized standardizing presumption or models that are universally utilized by the economists, i.e., expected utility and discounted utility respectively. The number of postmortal organ donors continuously declined about one third from the original amount of 1296 organs donated in 2010 to 864 organs donated in 2014, as the German Organ Transplantation Foundation (Deutsche Stiftung Organtransplantation) reported. Behavioral Economics of Education: Progress and Possibilities. This process drew mostly on my own knowledge and research and required a certain amount of subjective judgment as to what constituted a 'behavioral economic' paper and what did not. They strongly depend on (a) responders’ concerns for equity as well as (b) strategic considerations of proposers. However, empirical data suggests differently: Responders do not accept all offers larger than zero. This assumption gets readily apparent in classic economic ultimatum games. Sch€afer, M., Haun, D. B. M., & Tomasello, M. (2015). Behavioral economics differs from this traditional approach in two ways. Self control. Because of limits of arbitrage less than perfect agents survive and influence market outcomes. Corporate Finance Behavioral Economics, Behavioral Finance Economics of Organizations, Contract Theory Law and Economics, Law and Finance . This paper, prepared under the aegis of the G20/OECD Task Force, first provides some historical context for the development of the field of behavioural economics and its increased application to policy. This case hints that if a pharmaceutical company aims to increase its proﬁts while protecting its reputation, it should license its drug and let someone else raise the price, rather than raise the price itself and make the same proﬁt. Take some countries in Europe that use an opt-out system for organ and tissue donations. Behavioral economics examines the psychology behind economic activities and economic decision making. Free research papers are not written to satisfy your specific instructions. 240 Benefit and Harm. International Encyclopedia of SocialSciences, Pergamon Press, 1st edition, October 1, 2001: 1094-1100. (1996). Traditional economic research assumes that people’s economic decisions are based … Because values for desirable outcomes may vary across different groups, societies, and cultures, arguments regarding the value dependence of nudging highlight that the direction of the nudging inﬂuence is strongly dependent on cultural goals and values. We begin with a preliminary question about relevance. One type, often termed “system 2,” includes a rational way of information processing. First, behavioral economics neither assumes that people are good in utility maximization nor that it is their only goal. Dual-processing accounts of reasoning, judgment, and social cognition. If the healthy food is placed at the beginning of the food options and the junk food at the end, the person will be more likely to unconsciously select the healthy option. The purpose of this paper is to present the major research methods in the fields of behavioral economics and neuroeconomics. (1979). In one classic experiment, for example, Cialdini et al. Using empirical tools, behavioral economists have shown rather that people have psychological biases, limited cognitive resources, and care about other values such as fairness, all of which might undermine their utility maximization behavior. We begin with a preliminary question about relevance. Behavioral finance has come under the spotlight recently after Richard Thaler was awarded the Nobel Prize in Economics. No. Adam Smith, behavioral economist. Stok, F. M., De Ridder, D. T. D., de Vet, E., & de Wit, J. Situational forces do not just affect the decision-making of individuals; they also affect how we judge the decisions of others. In contrast, behavioral ethics neither assumes people are good at utility maximization nor that it is their only goal. Rather, according to this approach, people have psychological biases such as loss aversion, they have limited cognitive resources, and they care about values such as fairness, all of which might undermine their utility maximization behavior. In an ideal world, defaults, frames, and price anchors would not have any bearing on consumer choices. Bounded rationality reflects the limited cognitive abilities that constrain human problem solving. All Rights Reserved. Bioethicists tend to ignore empirical evidence showing that many moral decisions are based far less on rational deliberations than on unconscious subliminal stimuli and situational forces.