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The Unfolding Landscape of Behavioral Economics: from the past to the future

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  • Michelle Baddeley

    (Institute for Choice, University of South Australia Business School; Institute for Global Prosperity, University College London.)

Abstract

Consolidated by the award of the 2017 Economics Nobel Prize to behavioral economist Richard Thaler, behavioral economics is enjoying a golden age. It combines a diverse range of insights from across the social sciences –including economists' powerful analytical tools, alongside rich evidence about real human behavior from other social sciences – especially psychology and sociology. This article explores the evolution of behavioral economics and some key behavioral insights about incentives and motivations; social influences and social learning, peer pressure, and group-think; heuristics and biases; decision-making under risk and uncertainty; present bias and procrastination; and nudging policy tools. These all illustrate how behavioral economics provides businesses and policy makers with a rich understanding of how real people think, choose, and decide.

Suggested Citation

  • Michelle Baddeley, 2019. "The Unfolding Landscape of Behavioral Economics: from the past to the future," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 3(1), pages 5-11, March.
    • Handle: RePEc:beh:jbepv1:v:3:y:2019:i:1:p:5-11
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    References listed on IDEAS

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