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Behavioral economics: from advising organizations to nudging individuals

Author

Listed:
  • Floris Heukelom
  • Esther-Mirjam Sent

    (Institute for Management Research, Radboud University)

Abstract

This paper starts from a distinction between "old" and "new" behavioral economics. The former is associated with, amongst others, a Carnegie group around Herbert Simon and a Michigan cluster led by George Katona. The roots of the latter may be traced to the work of especially Amos Tversky and Daniel Kahneman. Concerning the former, the paper illustrates how it emerged out of an interest in organizational policy. Regarding the latter, the paper argues that it serves as a natural input for policy concerning individual decision making. The returning theme is that behavioral economics serves as inherent inspiration for policy proposals.

Suggested Citation

  • Floris Heukelom & Esther-Mirjam Sent, 2017. "Behavioral economics: from advising organizations to nudging individuals," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 1(1), pages 5-10, February.
    • Handle: RePEc:beh:jbepv1:v:1:y:2017:i:1:p:5-10
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    References listed on IDEAS

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    2. Laibson, David & Zeckhauser, Richard, 1998. "Amos Tversky and the Ascent of Behavioral Economics," Journal of Risk and Uncertainty, Springer, vol. 16(1), pages 7-47, April.
    3. Davis, Douglas D. & Holt, Charles a., 1993. "Experimental economics: Methods, problems and promise," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 8(2), pages 179-212.
    4. Cass R. Sunstein & Richard H. Thaler, 2003. "Libertarian paternalism is not an oxymoron," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 48(Jun).
    5. Waterson, Michael, 2003. "Consumers and Competition," Economic Research Papers 269563, University of Warwick - Department of Economics.
    6. Richard H. Thaler & Cass R. Sunstein, 2023. "Libertarian paternalism," Chapters, in: Cass R. Sunstein & Lucia A. Reisch (ed.), Research Handbook on Nudges and Society, chapter 1, pages 10-16, Edward Elgar Publishing.
    7. Esther-Mirjam Sent, 1998. "Sargent and the unbearable lightness of symmetry," Journal of Economic Methodology, Taylor & Francis Journals, vol. 5(1), pages 93-114.
    8. Waterson, Michael, 2003. "The role of consumers in competition and competition policy," International Journal of Industrial Organization, Elsevier, vol. 21(2), pages 129-150, February.
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    10. Herbert A. Simon & Massimo Egidi & Ricardo Viale & Robin Marris, 1992. "Economics, Bounded Rationality and the Cognitive Revolution," Books, Edward Elgar Publishing, number 409.
    11. Esther-Mirjam Sent, 2002. "How (Not) to Influence People: The Contrary Tale of John F. Muth," History of Political Economy, Duke University Press, vol. 34(2), pages 291-320, Summer.
    12. Sargent, Thomas J, 1984. "Autoregressions, Expectations, and Advice," American Economic Review, American Economic Association, vol. 74(2), pages 408-415, May.
    13. Esther-Mirjam Sent, 2004. "Behavioral Economics: How Psychology Made Its (Limited) Way Back Into Economics," History of Political Economy, Duke University Press, vol. 36(4), pages 735-760, Winter.
    14. Anon, 2002. "The Economy of Influence," Environment and Planning A, , vol. 34(8), pages 1331-1332, August.
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    More about this item

    Keywords

    old and new behavioral economics; (bounded) rationality; organizational behavior; nudging;
    All these keywords.

    JEL classification:

    • B3 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other

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