Introduction to Behavioral Economics

David Just is Associate Professor and Director of Graduate Studies in the Department of Applied Economics and Management at Cornell University where he regularly teaches undergraduate and graduate courses in econometrics, microeconomics, and behavioral economics. Professor Just's areas of expertise are behavioral economics, risk and uncertainty, and information while his research interests center around the use of information, and more particularly, how differences in human capital and information availability affect decisions.Just received his Ph.D. from the University of California, Berkeley in 2001.? His professional activities include Board Member, Northeast Agricultural and Resource Economics Association; Committee Member, American Agricultural Economics Association; and Honor Societies, Phi Kappa Phi, Golden Key, Alpha Lambda Delta, Phi Eta Sigma, Omicron Delta Epsilon.

• Preface xv1 Rationality, Irrationality, and Rationalization 1Part 1 Consumer Purchasing Decisions2 Transaction Utility and Consumer Pricing 173 Mental Accounting 414 Status Quo Bias and Default Options 705 The Winner’s Curse and Auction Behavior 93Part 2 Information and Uncertainty6 Bracketing Decisions 1257 Representativeness and Availability 1568 Confirmation and Overconfidence 1879 Decision under Risk and Uncertainty 21410 Prospect Theory and Decision under Risk or Uncertainty 250Part 3 Time Discounting and the Long and Short Run11 Disagreeing with Ourselves: Projection and Hindsight Biases 28112 Naïve Procrastination 30913 Committing and Uncommitting 347Part 4 Social Preferences14 Selfishness and Altruism 38915 Fairness and Psychological Games 41716 Trust and Reciprocity 450Glossary 473Index 495