Modern Developments in Behavioral Economics: Social Science Perspectives on Choice and Decision Making

This book examines the field of behavioral economics and provides insights into the following questions: Does utility bring happiness?;How do emotions and personal perspectives color our economic decisions?;How do altruism, trust, fairness and justice come into play in game theory?;Why are some organizations so successful in implementing their objectives?;Can advances in neuroeconomics unlock the secrets of how decisions are made?;The book looks at decision making and behavior from the point of view of (i) individual behavior and choice; (ii) group and interactive choice; and (iii) collective choices and decision making. In particular, it covers the following aspects: instances when bounded rationality leads to decisions inconsistent with standard economic assumptions; risk and the processes by which investors and consumers make decisions; altruistic and cooperative behavior as alternatives to competition; game theory as a way to explore motives of cooperation versus competition; the determinants of happiness and the relationship between utility and well-being; the concept of social capital, including motivations for charity and being a responsible citizen; how trust and fairness relate to economic actions and the motivation to cooperate rather than compete; behavior such as crime, corruption and bribery from ethical, social and economic viewpoints; and, finally, the decision making process of collective choice and how societies develop rules for governing themselves.This is the first book to bridge economics, psychology, sociology and political sciences and explain the nuanced subtleties of decision making.