Bargaining and Market Behavior
Subtitle: Essays in Experimental Economics
Edition: New Ed edition
Publisher: Cambridge University Press
Published: December 15, 2005
Language: eng
Format: Paperback
Number of pages: 473
ISBN-13: 9780521021487
Subjects: Economic theory & philosophy; Economic History; Business & Economics; Business / Economics / Finance; Business/Economics; Economics - General; Business & Economics / Economic History; Business & Economics / Economics / General; Business & Economics-Economic History; Economics--Methodology; Economics--Methodology Economics--Methodology; Economics; Methodology; Psychological aspects; Simulation methods
First sentence: Economic theorists and cognitive (decision behavior) psychologists agree on several core (maintained) hypotheses about human decision making: (1) rationality in social and economic contexts derives directly from the rationality of individual decision makers - if surveys of isolated individuals indicate irrational responses, ipso facto, markets and other group interaction decision systems will be irrational; (2) individual rationality is a self-aware cognitive process - if people get things right, it is through thinking about and understanding the processes in which they partake; and (3) the human mind is modeled as a general purpose problem-solving machine that governs reasoning, learning, memory, and decision making with "no features specialized for processing particular kinds of content" (Gigerenzer, 1996, p. 329).