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Psychology in Economics and Business: An Introduction to Economic Psychology

Psychology in Economics and Business: An Introduction to Economic Psychology

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Psychology in Economics and Business is the first textbook in economic psychology that is targeted at students of economics and business administration. It describes the experiments and explains the psychological background associated with the topics. The book presents the state of the art in behavioral economics and economic psychology and their applications to economics and business. The first part organizes economic psychological themes within a common paradigm. The applications belong to a great variety of fields in economic psychology, including entrepreneurial behavior, perceptions of price, risk, inflation and economic activities, economic socialization, demand theory, attitudes and brand images, decision making and heuristics, economic expectations, well-being, poverty and consumer satisfaction. The second part deals with information processing in a wider sense. The psychological principles of consistency and attribution are dealt with and recent developments in rationality and choice under uncertainty are considered. A chapter on game theory focuses on psychological factors in several social dilemmas. Strategies and tactics in human interaction are dealt with in a chapter on negotiation behavior. The chapter on economic psychological methodsdeals with the acquisition of knowledge from the observation of economic behavior in reality and in experimental settings.