An Introduction to Behavioral Economics (3^rd Ed., 3rd ed. 2018)

The third edition of this successful textbook is a comprehensive, rigorous survey of the major topics in the field of behavioral economics. Building on the strengths of the second edition, it offers an up-to-date and critical examination of the latest literature, research, developments and debates in the field. Offering an inter-disciplinary approach, the authors incorporate psychology, evolutionary biology and neuroscience into the discussions. And, ultimately, they consider what it means to be ?rational?, why we so often indulge in ?irrational? and self-harming behavior, and also why ?irrational? behavior can sometimes serve us well.

A perfect book for Economics students taking a module in Behavioural Economics at higher undergraduate level, or for students with an economics background taking a behavioural economics module at Master's level.

PART I: INTRODUCTION.- 1. Nature of Behavioral Economics.- 2. Methodology.- PART II: FOUNDATIONS.- 3. Values, Preferences and Choices.- 4. Beliefs and Expectations.- 5. Decision-making under Risk and Uncertainty.- 6. Mental Accounting.- PART III: INTERTEMPORAL CHOICE.- 7. The Discounted Utility Model.- 8. Alternative Intertemporal Choice Models.- PART IV: STRATEGIC INTERACTION.- 9. Behavioral Game Theory.- 10. Social Preferences.- PART V: CONCLUSION.- 11. Behavioral Economics: Summary and Outlook.

Nick Wilkinson is Professor of Economics at Richmond the American International University in London and has taught economics and finance in various international institutions in the UK and USA. He has also worked in business management in both countries and served as a consultant to many companies, mainly in the leisure industry. He has authored two books, 'Managerial Economics: A Problem-Solving Approach', published by Cambridge University Press. His research interests lie in behavioral economics, particularly in the implications of evolutionary biology and neuroscience for behavioral economics.

Matthias Klaes is President of the Scottish Economic Society and Convener of the Scottish Centre for Economic Methodology. He has published widely in organisational and behavioral economics and finance, and regularly acts as an adviser to both private and public sector bodies. His current research focuses on the behavioral dimensions of online marketplaces and digital finance.

• A truly comprehensive and cross-disciplinary survey of behavioral economics
  
• Places individual decision-making in a broader context of economic modelling
  
• Explains policy implications of behavioral economics approaches
  
• Fully updated to include the latest research and developments in the area
  
• Contains a wealth of case studies, examples and review questions
  
• PowerPoint slides for lecturers to use in their teaching are available on a companion website at www.macmillanihe.com/Wilkinson-IBE-3
  

new_to_this_edition 

• Features extended material on heuristics and biases, and new material on neuroeconomics and its applications
  
• Presents updated and brand new, highly topical case studies, such as voting behavior in Brexit and the Trump election, and the current "obesity epidemic"
  
• Includes more examples and review questions to help cement understanding