2nd Edition

Behavioural Economics and Finance

By Michelle Baddeley Copyright 2019
354 Pages 16 B/W Illustrations
by Routledge

354 Pages 16 B/W Illustrations
by Routledge

354 Pages 16 B/W Illustrations
by Routledge

Behavioural economics and behavioural finance are rapidly expanding fields that are continually growing in prominence. While orthodox economic models are built upon restrictive and simplifying assumptions about rational choice and efficient markets, behavioural economics offers a robust alternative using insights and evidence that rest more easily with our understanding of how real people think,... Read more

1. Introducing Behavioural Economics.  PART I MICROECONOMIC PRINCIPLES.  2. Motivations and Incentives.  3. Heuristics and Bias.  4. Prospects and Regrets.  5. Learning. 6. Sociality and Identity  7. Time and Plans.  8. Bad Habits.  9. Personality, Moods and Emotions.  PART II EXTENSIONS: POLICY, NEUROECONOMICS AND BEHAVIOURAL FINANCE.  10. Behavioural Public Policy.  11. Neuroeconomics I: Principles.  12. Neuroeconomics II: Evidence.    13. Behavioural Anomalies in Finance.  14. Corporate Investment and Finance.  15. Emotional Trading.  PART III MACROECONOMICS AND FINANCIAL SYSTEMS.  16. Behavioural Macroeconomics.  17 Financial Instability and Macroeconomic Performance.  18 Happiness and Wellbeing.

Biography

Michelle Baddeley is a behavioural economist and applied economist based at the University of South Australia’s Institute for Choice in Sydney. She is an Honorary Professor with University College London’s Institute for Global Prosperity, Associate Researcher with the Cambridge Energy Policy Research Group and Associate Fellow with the Centre for Science and Policy, University of Cambridge. She has also worked with policy-makers across a diverse range of themes and her research brings economic insights from applied economics, behavioural economics, behavioural finance and neuroeconomics to multidisciplinary studies.

"Behavioural Economics and Finance is a useful introduction into an ever-expanding area from which we can expect many other primers to emerge in the next decade.", Jason F. Shogren, University of Wyoming, Journal of Economic Literature

"This book introduces the reader to some of the key concepts and insights from the rich, interdisciplinary approach to real world decision-making of behavioural economics … and behavioural finance. […] Each theme is explored theoretically and illustrated with recent findings from experimental and neuroeconomics research.", Lucia A. Reisch, Journal of Consumer Policy, 2014