Behavioural Economics and Finance

by Michelle Baddeley (Author), Michelle Baddeley (Author)

• New

  Illustrated
  2018

  $91.59

  Behavioural economics and behavioural finance are both 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, choose and decide. This insightful textbook introduces the key concepts from this rich, inter-disciplinary approach to real-world decision-making.

  This new edition of Behavioural Economics and Finance is a thorough extension of the first edition, including updates to the key chapters on prospect theory; heuristics and bias; time and planning; sociality and identity; bad habits; personality, moods and emotions; behavioural macroeconomics; and wellbeing and happiness. It also includes a number of new chapters dedicated to the themes of incentives and motivations, behavioural public policy, and emotional trading. Using pedagogical features, such as chapter summaries and revision questions, to enhance reader engagement, this text successfully blends economic theories with cutting edge multi-disciplinary insights.

  This second edition will be indispensable to anyone interested in how behavioural economics and finance can inform our understanding of consumers' and businesses' decisions and choices. It will appeal especially to undergraduate and graduate students but also to academic researchers, public policy-makers, and anyone interested in deepening their understanding of how economics, psychology and sociology interact in driving our everyday decision-making.