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Foundations

In: Evolving Norms

Author

Listed:
  • Shinji Teraji

    (Yamaguchi University)

Abstract

In this chapter explains some fundamental concepts used in this book. The concepts are as follows: social norms; economic behavior; rationality; cognition; institutions; path dependence; and institutional change. An understanding of social norms is critical to predict and explain human behavior. People incorporate in themselves a set of social norms from their surroundings. Norms govern behavior, and are self-sustaining in an interdependent system. Norms specify a limited range of behavior that is acceptable in a situation, and facilitate confidence in the course of action. Norms enable individuals to deal with the complexity and incompleteness of information, and make them stick to prescribed behavior. Norms, thus, describe the uniformities of behavior that characterize groups.

Suggested Citation

  • Shinji Teraji, 2016. "Foundations," Palgrave Advances in Behavioral Economics, in: Evolving Norms, chapter 0, pages 1-63, Palgrave Macmillan.
    • Handle: RePEc:pal:paichp:978-1-137-50247-6_1
    DOI: 10.1057/978-1-137-50247-6_1
    as

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