Economics wins, psychology loses, and society pays
By: Max H. Bazerman, Deepak Malhotra
Contributors: Malhotra, Deepak, 1975-; Harvard Business School. Division of Research
Series: Working paper / Division of Research, Harvard Business School -- 05-039; Working paper (Harvard Business School. Division of Research) -- 05-039
Publisher: Division of Research, Harvard Business School
Published: 2004
Place of publication: Boston
Language: eng
Number of pages: 27
Description: Economics is the social science that dominates public policy debate and formulation. Economic assumptions lay the foundation for policy initiatives and economic principles provide the framework for design of regulations that govern our society. We argue that other social sciences, and in particular psychology, have a great deal to offer, and that our failure to incorporate the lessons from other social sciences leads to inferior public policy. The chapter outlines five predominant myths, adapted from pervasive economic assumptions, which serve as guiding policy principles and destroy value in society. We elaborate on the consequences of our over-reliance on these myths, and demonstrate how psychological lessons and insights might inform policy decisions.
Notes: Includes bibliographical references.