Mechanism in behavioural economics
File(s)joffe behavioural economics JEM final tca ppr.pdf (326.5 KB)
Accepted version
Author(s)
Joffe, Michael
Type
Journal Article
Abstract
Behavioural economics promises to bring economics closer to being evidence based. However, its ability to do this may depend on a methodological issue: whether the findings of behavioural economics are used to modify or extend standard theory, or to contribute towards replacing it where required – respectively the incremental and selective replacement strategies. I focus on the incremental approach, in terms of its implied causal mechanism. Two stages are involved, corresponding to the prediction of standard theory and to a separate component that aligns it with actual observations. In behavioural economics, one possible interpretation of the language of ‘biases’ is such a two-stage approach. More explicitly, Rabin advocates it in the form of PEEMs (Portable Extensions of Existing Models). A more direct, one-stage approach may have some advantages, at least for some research topics.
Date Issued
2019-07-03
Date Acceptance
2018-07-20
Citation
Journal of Economic Methodology, 2019, 26 (3), pp.228-242
ISSN
1350-178X
Publisher
Routledge
Start Page
228
End Page
242
Journal / Book Title
Journal of Economic Methodology
Volume
26
Issue
3
Copyright Statement
© 2019 Informa UK Limited, trading as Taylor & Francis Group. This is an Accepted Manuscript of an article published by Taylor & Francis in Journal of Economic Methodology on 11 Jun 2019, available online: https://www.tandfonline.com/doi/full/10.1080/1350178X.2019.1625214
Identifier
http://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000474607700005&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=1ba7043ffcc86c417c072aa74d649202
Subjects
Social Sciences
Economics
Business & Economics
Behavioural economics
biases
economic methodology
causal mechanism
evidence-based economics
PEEMs (Portable Extensions of Existing Models)
B41
D91
G41
EVOLUTIONARY PSYCHOLOGY
HEURISTICS
MODELS
Publication Status
Published
Date Publish Online
2019-06-11