© 2011 – Routledge
216 pages | 13 B/W Illus.
Economics and moral philosophy have in recent years been considered to be distinct and separate fields. However, behavioural economics has started to reconcile various aspects of morality and economics, which has offered new conceptual opportunities to advance economics ethics and business ethics.
This book aims to advance economic ethics and business ethics by combining normative principles and empirical evidence grounded on the key motivational forces in economic decision making. It has three core objectives:
1. Introduction 2. Ethics, Economics, Economic Ethics & Business Ethics 3. Cooperation in Order Ethics 4. Rationality in Order Ethics 5. Fairness in Order Ethics 6. Cardinal Virtues of Business Ethics Based on Behavioural Economics 7. Implementing Economic Ethics and Business Ethics 8. Conclusions and Outlook
Traditionally, economists have based their analysis of financial markets and corporate finance on the assumption that agents are fully rational, emotionless, self-interested maximizers of expected utility. However, behavioural economists are increasingly recognizing that financial decision makers may be subject to psychological biases, and the effects of emotions. Examples of this include the effects on investors’ and managers’ decision-making of such biases as excessive optimism, overconfidence, confirmation bias, and illusion of control. At a practical level, the current state of the financial markets suggests that trust between investors and managers is of paramount importance.
Routledge Advances in Behavioural Economics and Finance presents innovative and cutting edge research in this fast paced and rapidly growing area, and will be of great interest to academics, practitioners, and policy-makers alike.