Economics and Psychology: Imperialism or Inspiration?

27 Pages Posted: 5 Nov 2008 Last revised: 1 Dec 2008

See all articles by Bruno S. Frey

Bruno S. Frey

CREMA; University of Basel

Matthias Benz

University of Zurich - Department of Economics

Date Written: November 4, 2008

Abstract

Economics and psychology are both sciences of human behaviour. This paper gives a survey of their interaction. First, the changing relationship between the two sciences is discussed: while economics was once imperialistic, it has become a science inspired by psychological insights. In order to illustrate this, recent developments and evidence for three major areas are presented: bounded rationality, non-selfish behaviour, and the economics of happiness.

Keywords: Economics and psychology, behavioral economics, social science paradigm

Suggested Citation

Frey, Bruno S. and Benz, Matthias, Economics and Psychology: Imperialism or Inspiration? (November 4, 2008). 1st IESE Conference, "Humanizing the Firm & Management Profession", Barcelona, IESE Business School, June 30-July 2, 2008. Available at SSRN: https://ssrn.com/abstract=1295285 or http://dx.doi.org/10.2139/ssrn.1295285

Bruno S. Frey (Contact Author)

CREMA ( email )

Südstrasse 11
Zurich, CH 8008
Switzerland
+41 44 380 00 78 (Phone)

University of Basel ( email )

Peter Merian-Weg 6
Basel, 4002
Switzerland

Matthias Benz

University of Zurich - Department of Economics ( email )

Zuerich, 8006
Switzerland

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