A Note on Pre-University Economics Students’ Awareness of Cognitive Bias
16 Pages Posted: 12 Dec 2013
Date Written: December 11, 2013
Abstract
We share the view of Beckman et al (JEE, 42:3, 255-269) that economics students should be aware of the challenge to standard microeconomics from behavioural studies. In this article we provide some insights into our students’ experience of what Kahneman (2011) describes as operating in within-subjects mode in contrast with our everyday experience of between-subjects mode. We pose the question: is it not time to add another critical variable on the demand side, bounded rationality, and include this in the specification of standards and examination syllabuses so that our students can really understand how markets work and can see the relevance of studying microeconomics?
Keywords: behavioural economics, bounded rationality, economic understanding, economic standards
JEL Classification: A21, D11
Suggested Citation: Suggested Citation