Psychology and the market
By: Edward L. Glaeser.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10203; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10203.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Economics -- Psychological aspects.
Description: "Prospect theory, loss aversion, mental accounts, hyperbolic discounting, cues, and the endowment effect can all be seen as examples of situationalism -- the view that people isolate decisions and overweight immediate aspects of the situation relative to longer term concerns.  But outside of the laboratory, emotionally-powerful situational factors -- frames, social influence, mental accounts -- are almost always endogenous and often the result of self-interested entrepreneurs.  As such, laboratory work and, indeed, psychology more generally, gives us little guidance as to market outcomes.  Economics provides a stronger basis for understanding the supply of emotionally-relevant situational variables.  Paradoxically situationalism actually increases the relative importance of economics"--National Bureau of Economic Research web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 1/26/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.