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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.
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    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.
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    12. Sargent, Thomas J, 1984. "Autoregressions, Expectations, and Advice," American Economic Review, American Economic Association, vol. 74(2), pages 408-415, May.
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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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