behavioural economics and game theory
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by
Steven
N.
Durlauf
and
Lawrence
E.
Blume
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Abstract
Behavioural economics, broadly defined, refers to the research programme that investigates the relationship between psychology and economic behaviour. The purpose of this article is to provide an outline of behavioural economics research and to describe where research in behavioural game theory stands within this outline. The aim is not to assess the impact of particular contributions or describe and interpret specific applications. Rather, the goal is to provide an organization of the literature based on the type of departures from standard theory.
Keywords
ambiguity; ambiguity aversion; asymmetric information; auctions; behavioural economics; behavioural economics and game theory; commitment; evolutionary games; expected utility hypothesis; fixed point theorems; framing effects; game theory; independence axiom; interdependent preferences; mechanism design; neuroeconomics; preference reversals; probability distributions; prospect theory; psychological games; social preferences; ultimatum game; uncertainty
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How to cite this article
Gul, Faruk. "behavioural economics and game theory." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 07 August 2017 <http://www.dictionaryofeconomics.com/article?id=pde2008_G000210> doi:10.1057/9780230226203.0115