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Emotions and Economic Preference

Author

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  • Todorova, Tamara
  • Ramachandran, Bharath

Abstract

We wish to examine critically the viewpoint that: a) economists take too narrow a view of rationality and do not recognize the role of emotions as a component of rationality and b) do not address the question of whether preferences are rational or not, and instead take them as just given. We trace the relationship between economics and emotions showing some economic dimensions of emotional states. We illustrate them with examples of economic behavior based on emotional reactions.

Suggested Citation

  • Todorova, Tamara & Ramachandran, Bharath, 2005. "Emotions and Economic Preference," EconStor Preprints 148646, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:148646
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    File URL: https://www.econstor.eu/bitstream/10419/148646/1/emotion.pdf
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    References listed on IDEAS

    as
    1. Jon Elster, 1998. "Emotions and Economic Theory," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 47-74, March.
    2. Telser, L G, 1980. "A Theory of Self-enforcing Agreements," The Journal of Business, University of Chicago Press, vol. 53(1), pages 27-44, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Rationality; Emotions;

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values

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