To discuss: the pointlessness of behavioural economics as modified classical economics, when large data applications make this a predictive science
A new paradigm for the introductory course in economics:
Our intro courses fail to reflect the dramatic advances in economics – concerning information problems and strategic interactions, for example – since Samuelson’s paradigm-setting 1948 textbook. Missing, too, is any sustained engagement with new problems we now confront and on which economics has important insights for public policy – climate change, innovation, instability and growing inequality amongst them. This column introduces a free online interactive text – now used as the standard intro at UCL, Sciences Po, and Toulouse School of Economics – which responds.
Collective behavioural economics
In financial markets we have some elegant models of collective human behaviour in, e.g. Black-Scholes formulae etc.
In more general contexts, what do we do? A population of mis-specified Bayesian learners? A bunch of partially informed voters? Distributed learners?
Things to think about here: Bounded rationality, rational inattention, institutions as stable orbits in behavioural systems, devious negotiation strategies …
See marketing psychology.
A fecund sub-field. See the risk perception page.
- Roug18: Tim Roughgarden (2018) Complexity Theory, Game Theory, and Economics. ArXiv:1801.00734 [Cs, Econ].
- VRTR17: Melissa A Valentine, Daniela Retelny, Alexandra To, Negar Rahmati, Tulsee Doshi, Michael S Bernstein (2017) Flash Organizations: Crowdsourcing Complex Work by Structuring Crowds As Organizations. In Proceedings of the 2017 CHI Conference on Human Factors in Computing Systems (pp. 3523–3537). ACM
- ChSu12: Gary Charness, Matthias Sutter (2012) Groups Make Better Self-Interested Decisions. Journal of Economic Perspectives, 26(3), 157–176. DOI
- Haus11: Daniel M. Hausman (2011) Mistakes about Preferences in the Social Sciences. Philosophy of the Social Sciences, 41(1), 3–25. DOI
- Shar15: Keiran Sharpe (2015) On the Ellsberg Paradox and its Extension by Machina (SSRN Scholarly Paper No. ID 2630471). Rochester, NY: Social Science Research Network