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Amos Tversky and the Ascent of Behavioral Economics

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Author Info
Laibson, David
Zeckhauser, Richard

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Abstract

Amos Tversky investigated and explained a wide range of phenomena that lead to anomalous human decisions. His two most significant contributions, both written with Daniel Kahneman, are the decision-making heuristics--representativeness, availability, and anchoring--and prospect theory. Tversky's concepts have broadly influenced the social sciences. In economics, they gave rise to the burgeoning field of behavioral economics. This field, skeptical of perfect rationality, emphasizes validation of modeling assumptions, integration of micro-level data on decisions (including experimental evidence), and adoption of lessons from psychology. Tversky's contributions are reviewed, assessed using citation analysis, and placed in historical context. Fertile areas for behavioral economics research are identified. Copyright 1998 by Kluwer Academic Publishers

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Publisher Info
Article provided by Springer in its journal Journal of Risk and Uncertainty.

Volume (Year): 16 (1998)
Issue (Month): 1 (April)
Pages: 7-47
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Handle: RePEc:kap:jrisku:v:16:y:1998:i:1:p:7-47

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  3. Floris Heukelom, 2005. "The Origin of Prospect Theory, or Testing the Intuitive Statistician," Tinbergen Institute Discussion Papers 05-111/2, Tinbergen Institute. [Downloadable!]
  4. Lothar Essig, 2005. "Precautionary saving and old-age provisions: Do subjective saving motive measures work?," MEA discussion paper series 05084, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
  5. DEGEORGE, François & JENTER, Dirk & MOEL, Alberto & TUFANO, Peter, 2000. "Selling company shares to reluctant employees : France Télécom's experience," Les Cahiers de Recherche 703, HEC Paris. [Downloadable!]
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  6. Krug, B. & Hendrischke, H., 2006. "Framing China: Transformation and Institutional Change," Research Paper ERS-2006-025-ORG Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni. [Downloadable!]
  7. Markus Pasche, 2008. "Zum Erklärungsgehalt der verhaltensorientierten Spieltheorie," Jena Research Papers in Business and Economics - Working and Discussion Papers 04/2008, Friedrich-Schiller-University Jena, School of Economics and Business Administration. [Downloadable!]
  8. Alessandro Innocenti, 2008. "How can a psychologist inform economics? The strange case of Sidney Siegel," Department of Economic Policy, Finance and Development (DEPFID) University of Siena 0808, Department of Economic Policy, Finance and Development (DEPFID), University of Siena. [Downloadable!]
  9. Essig, Lothar, 2004. "Precautionary saving and old-age provisions: Do subjective saving motives measures work?," Sonderforschungsbereich 504 Publications 05-22, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim. [Downloadable!]
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