Foundations of Economic Psychology: A Behavioral and Mathematical Approach

Description

This book provides an overview of the concept of economic psychology from behavioral and mathematical perspectives and related theoretical and empirical findings. Economic psychology is defined briefly as a general term for descriptive theories to explain the psychological processes of microeconomic behaviors and macroeconomic phenomena. However, the psychological methodology and knowledge of economic psychology have also been applied widely in such fields as economics, business administration, and engineering, and they are expected to become increasingly useful in the future—a trend suggested in several eminent scholars’ studies. The book explains the numerous behavioral and mathematical models of economic psychology related to micro- and macroeconomic phenomena that have been proposed in the past, and introduces new models that are useful to explain human economic behaviors. It concludes with speculations about the future of modern economic psychology, referring to its connection with fields related to neuroscience, such as neuroeconomics, which have been developed in recent years. Readers require no advanced expertise; nonetheless, an introductory understanding of psychology, business administration, and economics, and a high- school-graduate level of mathematics are useful. To aid readers, each chapter includes a bibliography, which can be referred for more details related to economic psychology. Front Matter ....Pages i-xxiii What Is Economic Psychology? The Perspective of Economic Psychology and the Research Framework (Kazuhisa Takemura)....Pages 1-31 Rational Choice and Revealed Preference: Theoretical Representation of Preference Relations Leading to the Best Choice (Kazuhisa Takemura)....Pages 33-58 Expected Utility Theory and Economic Behavior: Predicting Decision Making Based on the Expected Value of Utility (Kazuhisa Takemura)....Pages 59-81 Nonlinear Utility Theory and Prospect Theory: Eliminating the Paradoxes of Linear Expected Utility Theory (Kazuhisa Takemura)....Pages 83-119 Mental Accounting and Framing: Framework of Decisions in Consumer Price Judgment (Kazuhisa Takemura)....Pages 121-156 Multi-attribute Decision Making Process in Economic Behavior: Process Tracking of Decision Making and Computer Simulation (Kazuhisa Takemura)....Pages 157-200 Deployment on the Consumer’s Interaction Research: Behavioral Game Theory and Problems of Happiness (Kazuhisa Takemura)....Pages 201-238 Consumers’ Preference Construction, Affects, and Neuroscientific Research: Research on Consumer’s Preference and Neuromarketing (Kazuhisa Takemura)....Pages 239-279 Back Matter ....Pages 281-288