From Imperialism to Inspiration: A Survey of Economics and Psychology
Zurich IEER Working Paper No. 118
31 Pages Posted: 26 Sep 2002
Date Written: May 2002
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.
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