Economic Psychology: An Introduction

Transcription

1 Economic Psychology: An Introduction ERICH KIRCHLER University of Vienna ERIK HOELZL University of Cologne CAMBRIDGE UNIVERSITY PRESS

2 CONTENTS List of Figures List of Tables Preface Acknowledgments page x xiii xv xviii 1 Economic Psychology: History and Application 1 Overview 1 Introduction Markets Economics and Psychology Economic Psychology Topic Areas within Economic Psychology 19 Conclusion 23 Summary 24 Questions 24 Further Reading 25 2 Decision-Making: Normative Models and Anomalies 26 Overview 26 Introduction Decisions under Uncertainty Certainty, Risk and Ambiguity Classical Decision Theory Economic Games Ultimatum and Dictator Game Prisoner's Dilemma Decision Anomalies Information Processing Problems in Information Processing Information Processing Paths Emotions Time Delayed Gratification Time Preferences and Discounting Distributed Choices: Melioration Distorted Memories Heuristics Availability Heuristic Representativeness Heuristic Anchoring and Adjustment Heuristic 56

3 vi Affect Heuristic Fast and Frugal Heuristics 59 Conclusion 60 Summary 61 Questions 61 Further Reading 62 3 Decision-Making: Descriptive Models and Choice Architecture 63 Overview 63 Introduction Prospect Theory Endowment Effect Sunk Cost Effect Mental Accounting and Hedonic Editing Descriptive Decision Models Individual Decisions Decisions in Organisations and in Politics Designing Decision Architectures Logic of Successful Decisions Nudging towards Desirable Behaviour 84 Conclusion 90 Summary 91 Questions 92 Further Reading 92 4 Lay Theories: Knowledge and Money 93 Overview 93 Introduction Lay Theories Theory of Social Representations Social Representations about the Economic System Social Representations about Poverty and Unemployment Social Representations about Money and Currency Economic Knowledge Development of Economic Understanding Development of Economic Motives Development of Economic Behaviour Financial Literacy Money Subjective Meanings of Money Subjective Value of Money Currency Reforms and Currency Changeovers Lay Beliefs and Representations about a Currency Changeover New Money and New Prices Subjective Interpretation of Prices 127

4 vii Price and Quality Price Perception Conclusion Summary Questions Further Reading Consumer Markets: Purchasing and Credit Use Overview Introduction 5.1 Purchase Decisions by Individual Consumers Typologies of Purchase Decisions Stage and Process Models of Purchase Decisions Goals and Motives in Purchase Decisions 5.2 Purchase Decisions in Private Households Models for Describing Purchase Decisions in the Household Methods of Studying Purchase Decisions in the Household Influence Distribution between Spouses Process Analysis of Decisions in the Household Outcomes of Decisions: Fairness and Satisfaction 5.3 Credit Decisions of Individuals and Households Credit Use as a Process Mental Accounting in Credit Use Conclusion Summary Questions Further Reading Labour Markets: Wages and Entrepreneurship Overview Introduction 6.1 Supply and Demand for Labour Experimental Economics and Game Theory Labour Market Experiments Reciprocity on the Labour Market 6.2 Wages Wages and Motivation Wage Fairness 6.3 Entrepreneurship Characteristics of Entrepreneurs Founding a Company Gender Differences in Entrepreneurship Conclusion Summary Questions Further Reading [

5 viii 7 Financial Markets: Risk and Investment 217 Overview 217 Introduction The Exchange Economic Perspectives on the Exchange Psychological Perspectives on the Exchange Investors' Mistakes Over- and Under-reactions to News Disposition Effect Heuristics Representativeness Heuristic and Anchoring and Adjustment Heuristic Recognition Heuristic Heuristic Risk Diversification Emotions Social Influences Trust in Financial Institutions 240 Conclusion 241 Summary 243 Questions 243 Further Reading Collective Cooperation: Shadow Economy and Tax Paying 245 Overview 245 Introduction In the Shadow of the Official Economy Taxes and Contributions Attitudes towards Taxes Tax Behaviour: Definitions, Relevant Actors and Research Methods Definitions of Tax Behaviour Actors in the Field Research Methods Paradigms of Tax Behaviour Research Decisions under Risk The Social Contribution Dilemma Differences among Taxpayers The 'Psychological Contract' Interaction Climate Synergistic versus Antagonistic Climates: Recommended Practice 281 Conclusion 282 Summary 283 Questions 284 Further Reading 284

6 ix 9 Collective Production: Work and Unemployment 285 Overview 285 Introduction Work Historical Changes in the Meaning of Work The Structure of Work Work and Leisure Unemployment Psychosocial Consequences of Unemployment Differential Impact of Unemployment Length of Unemployment Subjective Importance of Work Subjective Causes of Unemployment Personality Characteristics Socio-demographic Characteristics Personal Activities Experience with Unemployment Social, Emotional and Informational Support Determinants of Re-employment 308 Conclusion 309 Summary 310 Questions 310 Further Reading Collective Prosperity: Wealth and Happiness 311 Overview 311 Introduction Life Satisfaction Definitions of Well-being, Happiness, Satisfaction and Quality of Life Measuring Satisfaction National and Subjective Life Satisfaction Life Satisfaction and Gross Domestic Product 328 Conclusion 337 Summary 338 Questions 338 Further Reading 339 Key Terms References Index