Aggregate effects of behavioral anomalies: A new research area

Artikel

Much recent research in economics focuses on exploring behavioral anomalies, i.e., systematic deviations from the assumptions of the rationally self-interested model of man. Laboratory studies are used to identify seeming inconsistencies with micro-economic theory on the level of individuals. Since economics is a social science, this article proposes that the next crucial step consists in shifting the focus to the macro-level. It examines the process through which behavioral anomalies are aggregated to a societal outcome. Since individuals are reactive when they interact with others and face institutional constraints, the aggregation process may lead to different outcomes than what has been observed in individual-level studies: the respective anomalies may disappear, or they may become stronger on the macro-level. The discussion demonstrates that there are a great number of aspects to be analyzed. The paper presents fragments of what could become a more extensive field of research.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Economics: The Open-Access, Open-Assessment E-Journal ; ISSN: 1864-6042 ; Volume: 8 ; Year: 2014 ; Issue: 2014-18 ; Pages: 1-15 ; Kiel: Kiel Institute for the World Economy (IfW)

Classification and Topics

• Classification: Wirtschaft ; General Economics: General ; History of Economic Thought, Methodology, and Heterodox Approaches ; Analysis of Collective Decision-Making: General
• Subject: Economics and psychology ; behavioral economics ; behavioral anomalies ; reactivity

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Frey, Bruno S. ; Gallus, Jana
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2014

Further information

• DOI: doi:10.5018/economics-ejournal.ja.2014-18
• Handle: http://hdl.handle.net/10419/97028
• Last update: 10.03.2025, 11:45 AM CET