Handbook of behavioural economics and smart decision making : rational decision making within the bounds of reason This Handbook is a unique and original contribution of over thirty chapters on behavioural economics. It examines and addresses an important stream of research where the starting assumption is that decision makers are for the most part relatively smart or rational. This particular approach is in contrast to a theme running through much contemporary work in which individuals behaviour is deemed irrational biased and error prone often due to how the brain is hardwired. In the smart people or bounded rationality approach where errors or biases occur and when social dilemmas arise more often than not improving the decision making environment can repair these problems without hijacking or manipulating the preferences of individuals. The Handbook covers a wide range of themes from micro to macro including economic psychology heuristics fast and slow thinking neuroeconomics experiments the capabilities approach institutional economics methodology nudging ethics and public policy. It argues that neoclassical decision making benchmarks are typically not the gold standard for best practice. The expert contributions demonstrate that decision making capabilities and decision making environments can both be more effective and consistent than nudging in improving welfare and utility and in maximizing well being. They also demonstrate how learning improved information empowerment voice and preference play a vital role in determining smart decision making outcomes. This comprehensive and original Handbook will appeal to academics in behavioural and experimental economics and economic psychology Contents: Foreword by Vernon Smith 1. Introduction to smart decision making Morris Altman Part I Smart decision makers different types of rationality and outcomes 2. Rational inefficiency : smart thinking bounded rationality and the scientific basis for economic failure and success Morris Altman 3. Rational mistakes that make us smart Nathan Berg 4. Rational choice as if the choosers were human Peter J. Boettke and Rosolino A. Candela 5. Smart predictions from wrong data : the case of ecological correlations Florian Kutzner and Tobias Vogel 6. Heuristics : fast frugal and smart Shabnam Mousavi Björn meder Hansjörg Neth and Reza Kheirandish 7. The beauty of simplicity (simple) heuristics and the opportunities yet to be realized Andreas Ortmann and Leonidas Spiliopoulos 8. Smart persons and human development : the missing ingredient in behavioral economics John F. Tomer Part II Aspects of smart decision making 9. Behavioral strategy at the frontline : insights and inspirations from the US Marine Corps Mie Augier 10. Feminist economics for smart behavioural economics Siobhan Austen 11. How regret moves individual and collective choices towards rationality Sacha Bourgeois Gironde 12. Is it rational to be in love Paul Frijters and Gigi Foster 13. Behavioural economic anthropology Giuseppe Danese and Luigi Mittone Part III Development and governance 14. Do changes in farmers seed traits align with climate change a case study of maize in Chiapas México C. Leigh Anderson Andrew Cronholm and Pierre Biscaye 15. Rationality globalization and x efficiency among financial institutions Roger Frantz 16. The evolution of governance structures in a polycentric system Edward Mcphail and Vlad Tarko Part IV Tax behaviour 17. Taxation and nudging Simon James 18. Income tax compliance Erich Kirchler Barbara Hartl and Katharina Gangl Part V Smart finance 19. Financial decisions in the household Bernadette Kamleitner Till Mengay and Erich Kirchle 20. Employing priming to shed light on financial decision making processes Doron Kilger 21. Experimental asset markets: behaviour and bubbles Owen Powell and Natalia Shestakova 22. To consume or to save : are we maximising or what Tobias F. Rötheli Part VI Dimensions of health 23. Time orientation effects on health behaviour Jannette Van Beek Michel J.J. Handgraaf and Gerrit Antonides 24. Behavioral aspects of obesity Ddelia Rosin 25. Time inconsistent preferences in intertemporal choices for physical activity & weight loss : evidence from canadian health surveys Nazmi Sari 26. Suicide amongst smart people Bijou Yang and David Lester Part VII Sociological dimensions of smart decision making 27. Seeing and knowing others : the impact of social ties on economic interactions Astrid Hopfensitz 28. Weakness of will and stiffness of will : how far are shirking slackening favoritism spoiling of children and pornography from obsessive compulsive behavior Elias L. Khalil 29. The role of identity personal and social capital in community crime prevention Ambrose Leung and Brandon Harrison 30. Norms culture and cognition Shinji Teraji Part VIII Morals and ethics 31. Rational choice in public and private spheres Herbert Gintis 32. Ethics and simple games Mark Pingle Index.