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George Loewenstein is one of the pioneers of the rapidly growing field of behavioral economics. For over twenty years he has been working at the intersection of economics and psychology and is one of the few people of whom it can be said that their work is equally respected and well known within both disciplines. This book brings together a selection of his papers focusing on what he calls "exotic preferences"-- the disparate motives that drive human behavior. In
addition to covering the history and methodology of behavioral economics, they also touch on a wide range of fascinating topics such as the motives that drive extreme athletes, our propensity to want to
get unpleasant experiences out of the way so we can focus on the more pleasant, and the psychology of curiosity. There are also papers on social preferences, discussing the importance of perceptions of fairness in interpersonal interactions, intertemporal choice-- the tradeoffs between costs and benefits occurring at different points in time-- and the impact of emotion on economic decision making. An original introduction outlines Loewenstein's general approach to research, and there are short
introductions to each paper outlining briefly when, how and why they came to be written, providing a fascinating and vivid insight into the process of intellectual creativity.
George Loewenstein is one of the pioneers of the rapidly growing field of behavioral economics. For over twenty years he has been working at the intersection of economics and psychology and is one of the few people of whom it can be said that their work is equally respected and well known within both disciplines. This book brings together a selection of his papers focusing on what he calls "exotic preferences"-- the disparate motives that drive human behavior. In
addition to covering the history and methodology of behavioral economics, they also touch on a wide range of fascinating topics such as the motives that drive extreme athletes, our propensity to want to
get unpleasant experiences out of the way so we can focus on the more pleasant, and the psychology of curiosity. There are also papers on social preferences, discussing the importance of perceptions of fairness in interpersonal interactions, intertemporal choice-- the tradeoffs between costs and benefits occurring at different points in time-- and the impact of emotion on economic decision making. An original introduction outlines Loewenstein's general approach to research, and there are short
introductions to each paper outlining briefly when, how and why they came to be written, providing a fascinating and vivid insight into the process of intellectual creativity.
George Loewenstein: Introduction
Part I General Perspectives, History, and Methods
1: George Loewenstein: Because it is There: The Challenge of
Mountaineering...for Utility Theory
2: Niklas Karlsson, George Loewenstein, and Jane McCafferty: The
Economics of Meaning
3: George Loewenstein: The Fall and Rise of Psychological
Explanations in the Economics of Intertemporal Choice
4: Nava Ashraf, Colin F. Camerer, and George Loewenstein: Adam
Smith, Behavioral Economist
5: George Loewenstein: Experimental Economics from the
Vantage-Point of Behavioral Economics
6: George Loewenstein: The Psychology of Curiosity: A Review and
Reinterpretation
Part II Social Preferences
7: George Loewenstein, Leigh Thompson, and Max H. Bazerman: Social
Utility and Decision Making in Interpersonal Contexts
8: Linda Babcock and George Loewenstein: Explaining the Bargaining
Impasse: The Role of Self-Serving Biases
Part III Basic Research on Preferences
9: Christopher K. Hsee, George Loewenstein, Sally Blount, and Max
H. Bazerman: Preference Reversals Between Joint and Separate
Evaluations of Options: A Review and Theoretical Analysis
10: Dan Ariely, George Loewenstein, and Drazen Prelec: "Coherent
Arbitrariness": Stable Demand Curves Without Staple Preferences
Part IV Predicting Tastes and Feelings
11: George Loewenstein and Daniel Adler: A Bias in the Prediction
of Tastes
12: Leaf Van Boven, George Loewenstein, and David Dunning:
Mispredicting the Endowment Effect: Understimation of Owners'
Selling Prices by Buyer's Agents
13: George Loewenstein, Ted O'Donoghue, and Matthew Rabin:
Projection Bias in Predicting Future Utility
Part V Intertemporal Choice
14: George Loewenstein: Anticipation and the Valuation of Delayed
Consumption
15: George Loewenstein and Drazen Prelec: Anomalies in
Intertemporal Choice: Evidence and an Interpretation
16: George Loewenstein and Drazen Prelec: Preferences for Sequences
of Outcomes
17: Drazen Prelec and George Loewenstein: The Red and the Black:
Mental Accounting of Savings and Debt
Part VI Emotions
18: George Loewenstein: Out of Control: Visceral Influences on
Behavior
19: George Loewenstein, Elke U. Weber, Christopher K. Hsee, and Ned
Welch: Risk as Feelings
20: Baba Shiv, George Loewenstein, Antoine Bechara, Hanna Damasio,
and Antonio R. Damasio: Investment Behavior and the Negative Side
of Emotion
21: Jennifer S. Lerner, Deborah Small, and George Loewenstein:
Heart Strings and Purse Strings: Carryover Effects of Emotions on
Economic Decisions
22: Samuel M. McClure, David I. Laibson, George Loewenstein, and
Jonathan D. Cohen: Separate Neural Systems Value Immediate and
Delayed Monetary Rewards
George Loewenstein, one of the founders of the field of behavioral
economics and of the new field of neuroeconomics, is the Herbert A.
Simon Professor of Economics and Psychology at Carnegie Mellon
University. He received his PhD in economics from Yale University
in 1985 and since then has held academic positions at the
University of Chicago and Carnegie Mellon University, and
fellowships at Center for Advanced Study in the Behavioral
Sciences, The Institute for
Advanced Study in Princeton, The Russell Sage Foundation and The
Institute for Advanced Study in Berlin. His research focuses on
applications of psychology to economics. Loewenstein has published
more
than 100 journal articles in economics, psychology, law, business
and medicine as well as numerous books and book chapters. He is the
former president of the Society for Judgment and Decision Making.
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