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Ordinaries

Author

Listed:
  • Terence C. Burnham

    (Chapman University)

  • Jay Phelan

    (UCLA)

Abstract

Neoclassical and behavioral economics disagree over the manner in which people discount the future. Neoclassical economics assumes that people make good, consistent decisions about savings and other intertemporal choices. In contrast, behavioral economics argues people are impatient and inconsistent in discounting decisions. Evolutionary biology suggests that, in natural settings, people will behave ‘as if’ they are following the neoclassical economic model. In novel settings, however, people will sometimes act as described by behavioral economic views, but at other times people will exhibit behaviors that are precisely the opposite of the predictions of the behavioral economic model.

Suggested Citation

  • Terence C. Burnham & Jay Phelan, 2021. "Ordinaries," Journal of Bioeconomics, Springer, vol. 23(1), pages 1-14, April.
    • Handle: RePEc:kap:jbioec:v:23:y:2021:i:1:d:10.1007_s10818-021-09313-z
    DOI: 10.1007/s10818-021-09313-z
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    References listed on IDEAS

    as
    1. Terence C. Burnham, 2016. "Economics and evolutionary mismatch: humans in novel settings do not maximize," Journal of Bioeconomics, Springer, vol. 18(3), pages 195-209, October.
    2. Shane Frederick & George Loewenstein & Ted O'Donoghue, 2002. "Time Discounting and Time Preference: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 351-401, June.
    3. George Loewenstein & Drazen Prelec, 1992. "Anomalies in Intertemporal Choice: Evidence and an Interpretation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 573-597.
    4. George-Marios Angeletos & David Laibson & Andrea Repetto & Jeremy Tobacman & Stephen Weinberg, 2001. "The Hyberbolic Consumption Model: Calibration, Simulation, and Empirical Evaluation," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 47-68, Summer.
    5. Loewenstein, George & Thaler, Richard H, 1989. "Intertemporal Choice," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 181-193, Fall.
    6. Thaler, Richard H, 1987. "The January Effect," Journal of Economic Perspectives, American Economic Association, vol. 1(1), pages 197-201, Summer.
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