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Twenty years ago, behavioral economics did not exist as a field. Most economists were deeply skeptical--even antagonistic--toward the idea of importing insights from psychology into their field. Today, behavioral economics has become virtually mainstream. It is well represented in prominent journals and top economics departments, and behavioral economists, including several contributors to this volume, have garnered some of the most prestigious awards in the profession.
This book assembles the most important papers on behavioral economics published since around 1990. Among the 25 articles are many that update and extend earlier foundational contributions, as well as cutting-edge papers that break new theoretical and empirical ground.
Advances in Behavioral Economics will serve as the definitive one-volume resource for those who want to familiarize themselves with the new field or keep up-to-date with the latest developments. It will not only be a core text for students, but will be consulted widely by professional economists, as well as psychologists and social scientists with an interest in how behavioral insights are being applied in economics.
The articles, which follow Colin Camerer and George Loewenstein's introduction, are by the editors, George A. Akerlof, Linda Babcock, Shlomo Benartzi, Vincent P. Crawford, Peter Diamond, Ernst Fehr, Robert H. Frank, Shane Frederick, Simon Gächter, David Genesove, Itzhak Gilboa, Uri Gneezy, Robert M. Hutchens, Daniel Kahneman, Jack L. Knetsch, David Laibson, Christopher Mayer, Terrance Odean, Ted O'Donoghue, Aldo Rustichini, David Schmeidler, Klaus M. Schmidt, Eldar Shafir, Hersh M. Shefrin, Chris Starmer, Richard H. Thaler, Amos Tversky, and Janet L. Yellen.
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As the title suggests, it does not include many of the seminal papers in behavioral economics, and in particular readers should also make sure to find Tversky and Kahneman's seminar 1979 paper on prospect theory, published in the journal Econometrica. This article, and many other seminal papers of behavioral economics, are collected in Kahneman and Tversky's edited volume Choices, Values, and Frames. (I also usually assign parts of Colin Camerer's excellent Behavioral Game Theory.) While students of behavioral economics should make a point of reading the 1979 article, I recommend doing so only after reading Camerer's excellent overview of some applications in chapter 5 of Advances in Behavioral Economics; you can also find an excellent presentation of the key concepts if you download the video of Daniel Kahneman's Nobel Prize lecture from the Nobel website.
However, as the title itself suggest -Andances in Behavioral economics-, in order to read many of the papers it's necessarly to have a kind of economical background (games theory, and so on...)
The introductory chapter by Camerer and Loewenstein is a must read for anyone interested in the field. And most of the papers selected for this volume are both representative of the field and present the gold standard of research in the field.
Such edited volumes face several difficult choice problems. There has to be a balance between the relative importance of a piece for the field and its age, a similar balance between an essays representativeness of a field of study and its ability to inspire new work. For me, Advances strikes a nice equilibrium of such concerns.
To be sure in the past few years since its publication several new research articles and books on behavioral economics have been published. However, both as a source of reference to the field and a useful guide to the student of behavioral economics this volume is invaluable.
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