Behavioral Economics, History of [chapter]

Michiru Nagatsu
2015 International Encyclopedia of the Social & Behavioral Sciences  
This article reviews the historical development of behavioral economics, with an emphasis on how it has become part of mainstream economics. First I describe the separation between economics and psychology as a historical background against which behavioral economics emerged. Then I introduce critiques of expected utility theory (EUT), and explain how behavioral decision research developed using EUT as an experimental paradigm. I then distinguish 'old,' 'new,' and 'secondwave' behavioral
more » ... ' behavioral economics, and briefly discuss criticisms of the last.
doi:10.1016/b978-0-08-097086-8.03053-1 fatcat:wf2t7fzqhjatbc5omjrs56fury