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.
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.
- Shalizi, C. R.(2009) Dynamics of Bayesian updating with dependent data and misspecified models. Electronic Journal of Statistics, 3, 1039–1074. DOI.