Behavioral Economics Commons^™

Behavioral Economics Y Políticas Públicas: Algunos Problemas Y Sus Soluciones / Behavioral Economics And Public Policies: Some Problems And Their Solutions [En Español], Daniel A. Monroy

Daniel A Monroy C

Abstract

The main target of this paper is to show a behavioral economics approach to –some– public policies from a descriptive and a normative point of view. To meet the target, (i) the paper summarizes two cognitive biases: the status quo bias and the endowment effect, and then shows how these biases could affect the effectiveness of public policies in some relevant contexts: the availability of human organs for transplantation; people's bad eating habits; and environmental resources management. In addition, (ii) the paper suggests some strategies (nudges) about how behavioral economics could inform policy maker to design or to improve …

The Homo [Not So] Economicus And The Law: A Critique Of Positive Theory Of Rational Choice In The Law [En Español], Daniel A. Monroy

Daniel A Monroy C

From the Behavioral Economics point of view, this paper presents a critic to one dimension of rational choice theory that is widely accepted by Law and Economics scholars. Our hypothesis is that (i) individuals deviate anomalously but predictably of normative assumption of rational choice. We suggests that, (ii) more than –unbounded– rational self interested individuals, in certain contexts, people tend to deviate from this normative behavior and also, tend to judge the behavior of other people, according to the consistency of these behaviors with a hypothetical situation commonly referred to as the "reference transaction".

Desde la perspectiva del Behavioral Economics, …

Behavioral Economics: Origins, Methodology And “Work Tools”, Daniel A. Monroy

Daniel A Monroy C

This paper has two main objectives: (i) The main objective is to propose a theoretical and methodological delimitation of the Behavioral Economics approach. In this point, the paper argues that such delimitation involves a permanent tension with the hypotheses of rational choice theory of human behavior. (ii) The secondary objective of the paper focuses on the methodology submitted, for this, we present a couple of case studies in order to explain and test such methodology. Furthermore, the case studies will allow us to determinate some work tools of the Behavioral Economics approach.

Modelling Biased Judgement With Weighted Updating, Jesse A. Zinn

Jesse A Zinn

The weighted updating model is a generalization of Bayesian updating that allows for biased beliefs by weighting the functions that constitute Bayes’ rule with real exponents. This paper shows that weighting a distribution affects the information entropy of the resulting distribution, suggesting that weighted updating can model biases in which individuals mistake the information content of data. The paper augments the base model in two ways, allowing it to account for additional biases. The first expansion involves discrimination between data. The second allows the weights to vary over time. The paper also presents a set of sufficient conditions for the …