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Behavioral Econometrics for Psychologists

  • Steffen Andersen

    ()

    (Copenhagen Business School)

  • Glenn W. Harrison

    ()

    (Department of Economics, College of Business Administration, University of Central Florida, USA)

  • Morten Igel Lau

    ()

    (Durham Business School)

  • Elisabet E. Rutstroem

    ()

    (Department of Economics, College of Business Administration, University of Central Florida, USA)

We make the case that psychologists should make wider use of structural econometric methods. These methods involve the development of maximum likelihood estimates of models, where the likelihood function is tailored to the structural model. In recent years these models have been developed for a wide range of behavioral models of choice under uncertainty. We explain the components of this methodology, and illustrate with applications to major models from psychology. The goal is to build, and traverse, a constructive bridge between the modeling insights of psychology and the statistical tools of economists.

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Paper provided by Durham University Business School in its series Working Papers with number 2007_08.

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Date of creation: 01 Sep 2007
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Handle: RePEc:dur:durham:2007_08
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Durham University Business School, Mill Hill Lane, Durham DH1 3LB, England

Phone: +44 (0)191 334 5200
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Web page: http://www.dur.ac.uk/business
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