蝌蚪网

This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. 蝌蚪网
  3. 蝌蚪网 Review
  4. May 2013
  5. An Approach to Incorporating Psychology into Economics

蝌蚪网 Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

An Approach to Incorporating Psychology into Economics

  • Matthew Rabin
蝌蚪网 Review
vol. 103, no. 3, May 2013
(pp. 617–22)
Download Full Text PDF

Abstract

This article proposes an approach to improving the psychological realism of economics while maintaining its conventional techniques and goals--formal theoretical and empirical analysis using tractable models, with a focus on prediction and estimation. Besides tolerating the imperfections that come with precision, models should aim for two crucial criteria: power and scope. The approach advocated is to develop portable extensions of existing models that embed preexisting theories as parameter values, while introducing the new psychological assumptions as alternative parameter values, and make the model portable by defining it in all cases where existing models make predictions.

Citation

Rabin, Matthew. 2013. "An Approach to Incorporating Psychology into Economics." 蝌蚪网 Review 103 (3): 617–22. DOI: 10.1257/aer.103.3.617

Additional Materials

JEL Classification

  • A12 Relation of Economics to Other Disciplines
  • D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making