The Case for Mindless Economics

Research output: Chapter in Book/Report/Conference proceedingChapter

4 Scopus citations

Abstract

Neuroeconomics does not directly refer to neuroscience, but it is usually perceived as a field that incorporates psychology with economics. Neuroeconomics is a research field that considers the following claims: 1) physiological and psychological evidence can be used to either discard or reinforce certain economic models and methodology; and 2) economic welfare analysis should be making use of "true utility" rather than "choice utility" because it is more important to account for what makes individuals happy in contrast with the utilities governing choice. Because neuroeconomics surpasses conventional economic practices by integrating psychological insights and neuroscientific evidence, this chapter illustrates how neuroeconomics attempts to impose changes in methodology, and discusses a neuroscience critique of traditional economics.

Original languageEnglish (US)
Title of host publicationThe Foundations of Positive and Normative Economics
Subtitle of host publicationA Hand Book
PublisherOxford University Press
ISBN (Electronic)9780199851768
ISBN (Print)9780195328318
DOIs
StatePublished - Oct 3 2011

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

Keywords

  • Choice utility
  • Economic welfare analysis
  • Neuroeconomics
  • Physiology
  • Psychology
  • True utility

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  • Cite this

    Gul, F., & Pesendorfer, W. (2011). The Case for Mindless Economics. In The Foundations of Positive and Normative Economics: A Hand Book Oxford University Press. https://doi.org/10.1093/acprof:oso/9780195328318.003.0001