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The Lichtenstein-Slovic-Tversky-Kahneman Nexus. A Prehistory of Behavioral Economics (1969-1974)

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  • Jean-Sébastien Lenfant

    (PRISM, Université Paris 1 Panthéon-Sorbonne)

Abstract

The purpose of this article is to provide a historical account of the contributions to judgment and decision making by four cognitive psychologists at the turn of the 1970s: Sarah Lichtenstein, Paul Slovic, Amos Tversky and Daniel Kahneman. Beyond the usual focus on Kahneman and Tversky's heuristics and biases approach, we uphold that historians of behavioral economics would gain from a broader and more balanced view of the contributions of these four psychologists to the theory of decision making. Together with the heuristics and biases approach, experiments on preference reversal and choice intransitivities represent a multifaceted criticism of standard theories of choice and decision against which the genesis of behavioral economics could be evaluated.

Suggested Citation

  • Jean-Sébastien Lenfant, 2024. "The Lichtenstein-Slovic-Tversky-Kahneman Nexus. A Prehistory of Behavioral Economics (1969-1974)," GREDEG Working Papers 2024-31, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    • Handle: RePEc:gre:wpaper:2024-31
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    References listed on IDEAS

    as
    1. Jean-Sébastien Lenfant, 2018. "Probabilising the consumer: Georgescu-Roegen, Marschak and Quandt on the modelling of the consumer in the 1950s," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 25(1), pages 36-72, January.
    2. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    3. Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
    4. N. Georgescu-Roegen, 1936. "The Pure Theory of Consumers Behavior," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 50(4), pages 545-593.
    5. Phillips, Lawrence D. & von Winterfeldt, Detlof, 2006. "Reflections on the contributions of Ward Edwards to decision analysis and behavioral research," LSE Research Online Documents on Economics 22711, London School of Economics and Political Science, LSE Library.
    6. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1039-1061.
    7. Rogério Arthmar & Michael Emmett Brady, 2016. "The Keynes–Knight and the de Finetti–Savage's Approaches to Probability: An Economic Interpretation," History of Economic Ideas, Fabrizio Serra Editore, Pisa - Roma, vol. 24(1), pages 105-124.
    8. Daniel Kahneman, 2003. "Maps of Bounded Rationality: Psychology for Behavioral Economics," American Economic Review, American Economic Association, vol. 93(5), pages 1449-1475, December.
    9. Alexandre Truc, 2022. "Interdisciplinary influences in behavioral economics: a bibliometric analysis of cross-disciplinary citations," Journal of Economic Methodology, Taylor & Francis Journals, vol. 29(3), pages 217-251, July.
    10. Boumans, Marcel, 2015. "Science Outside the Laboratory: Measurement in Field Science and Economics," OUP Catalogue, Oxford University Press, number 9780199388288.
    11. Sarah Lichtenstein & Paul Slovic, 1973. "Response-induced reversals of preference in gambling: An extended replication in las vegas," Framed Field Experiments 00169, The Field Experiments Website.
    12. Alexandre Truc, 2022. "Forty years of behavioral economics," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 29(3), pages 393-437, May.
    13. Frederick Mosteller & Philip Nogee, 1951. "An Experimental Measurement of Utility," Journal of Political Economy, University of Chicago Press, vol. 59(5), pages 371-371.
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    15. Floris Heukelom, 2012. "Three explanations for the Kahneman-Tversky Programme of the 1970s," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 19(5), pages 797-828, October.
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    More about this item

    Keywords

    Lichtenstein (Sarah); Slovic (Paul); Tversky (Amos); Kahneman (Daniel); heuristics and biases; preference reversal; intransitivity; preferences; behavioral economics; conjoint measurement; judgment; expected utility theory; mathematical psychology; cognitivism; experiments;
    All these keywords.

    JEL classification:

    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • B29 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Other
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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