Monday, September 08, 2008
Lunn, Peter. "Behavioural Economics: is it Such a Big Deal?" PROSPECT MAGAZINE 150 (September 2008).
Orthodox economic models are not wrong as such, but rather sloppy, biased approximations of how our economy works. They present a cartoon characterisation of economic life, greatly exaggerating one side of our nature at the expense of others. Behavioural economics has started to paint a more realistic picture. Its progress is following the pattern of a scientific revolution. At first the findings seem to be anomalies and oddities, but on closer inspection they yield new principles and regularities. Economists trained in the conventional approach were initially resistant—many still are—but over time the more open-minded and, interestingly, younger economists are being enticed towards the new field; testing explanations, deriving implications. . . . Read the rest here: http://www.prospect-magazine.co.uk/article_details.php?id=10359.