A Review on “A Perspective on Psychology and Economics” of Matthew Rabin

During Behavioural Accounting Workshop in Kuala Lumpur, Prof Tan from NTU addressed shocking information: “Most of accounting, economics, and management scholars have wrong conclusion in behavioural research because most of them never take any formal education of psychology”. Indeed, I do agree with that. Most papers in behavioural economics hanged the conclusion up to addressing the results. No further elaboration with psychology perspective. For example is the Role of full moon on investor behaviour. Rarely found a paper elaborate the findings with Forgas Affect Infusion Model or the Somatic Marker or other psychology literature. It just reported there is an effect of full moon on investor behaviour. That’s all. No robust discussion.

Interestingly, I found a working paper of Matthew Rabin entitled “A Perspective on Psychology and Economics”. The flow is very interesting. It starts with the potential of behavioural economics in the future, then the unrealistic assumption in mainstream economics where behavioural economics tries to fill in, and how we can use psychology to fill in the unrealistic economics assumption. Here is the review. Continue reading

Popular Books in Behavioural Economics

I search the popular books that related to behavioural economics. Some universities listed it as a must to read for students who really likes behavioral economics. I have some of it. It read around 11 out of 75 books that enlisted there. Seriously, I thought i already have a good coverage for behavioural economics. In the end, I just realized that I just read about 12% from LISTED popular books.

For those who are interested in behavioural economics, this is the list of popular books that a must to read. I made this list by summarizing from several lists. Fyi, the idea to list the book is coming from Prof. Rubinstein. He also has a list of must-a-read book. Just go to his website and you will find the same. He also has several downloadable books.

POPULAR BOOKS in BEHAVIOURAL ECONOMICS

1.      Advances in Behavioral Economics by  Camerer, C.F., Loewenstein, G., and Rabin, M

2.      An Introduction to Behaviorial Economics by Wilkinson, N

3.      Animal Spirits: How Human Psychology Drives the Economy, and Why it Matters for Global Capitalism by Akerlof, G.A. & Shiller, R.J. Continue reading