The last ten years have seen an enormous surge of interest in issues that are common to psychology and economics. How do people make decisions about economic issues? How should they make such decisions? Does public policy or regulation succeed in its aim of helping people make these decisions? What situations aid cooperation?
This volume explores some of the ways in which economists and psychologists have tried to answer these questions. The authors are an international mix of economists and psychologists, and as such they demonstrate a diverse range of approaches to tackling different aspects of these issues. This is a frontier area for both psychology and economics, and consequently it is relatively free, lawless and, above all, exciting. This collection reflects the diversity and energy that characterise this rapidly growing interdisciplinary field.
This book was originally published as a special issue of New Zealand Economic Papers.
1. Introduction: Psychology and economics Simon Kemp and Gabrielle Wall 2. From anecdotes to novels: Reflective inputs for behavioural economics Peter E. Earl 3. Aspiration formation and satisficing in search with(out) competition Werner Güth and Torsten Weiland 4. Are conditional cooperators willing to forgo efficiency gains? Evidence from a public goods experiment M. Vittoria Levati, Matteo Ploner and Stefan Traub 5. Who makes the pie bigger? An experimental study on co-opetition Juan A. Lacomba, Francisco Lagos and Tibor Neugebauer 6. An experimental examination of the effect of potential revelation of identity on satisfying obligations Lucy F. Ackert, Bryan K. Church and Shawn Davis 7. Gender differences in trust and reciprocity in repeated gift exchange games Ananish Chaudhuri and Erwann Sbai 8. Do separation rules matter? An experimental study of commitment Filip Vesely, Vivian Lei and Scott Drewianka 9. Overcapitalization and cost escalation in housing renovation Ti-Ching Peng 10. Over-indebtedness and the interplay of factual and mental money management: An interview study Bernadette Kamleitner, Bianca Hornung and Erich Kirchler 11. Coherence and bidirectional reasoning in complex and risky decision-making tasks C. Gustav Lundberg 12. Outwit, outplay, outcast? Sex discrimination in voting behaviour in the reality television show 'Survivor' Gabrielle Wall 13. Ambiguity, the certainty illusion, and the natural frequency approach to reasoning with inverse probabilities John Fountain and Philip Gunby