Exotic Preferences: Behavioral Economics and Human Motivation
George Loewenstein is one of the pioneers of the rapidly growing field of behavioral economics. For over twenty years he has been working at the intersection of economics and psychology and is one of the few people of whom it can be said that their work is equally respected and well known within both disciplines. This book brings together a selection of his papers focusing on what he calls "exotic preferences"—the disparate motives that drive human behavior. In addition to covering the history and methodology of behavioral economics, they also touch on a wide range of fascinating topics such as the motives that drive extreme athletes, our propensity to want to get unpleasant experiences out of the way so we can focus on the more pleasant, and the psychology of curiosity. There are also papers on social preferences, discussing the importance of perceptions of fairness in interpersonal interactions, intertemporal choice—the tradeoffs between costs and benefits occurring at different points in time—and the impact of emotion on economic decision making. An original introduction outlines Loewenstein's general approach to research, and there are short introductions to each paper outlining briefly when, how and why they came to be written, providing a fascinating and vivid insight into the process of intellectual creativity.
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Exotic Preferences: Behavioral Economics and Human Motivation
George Loewenstein is one of the pioneers of the rapidly growing field of behavioral economics. For over twenty years he has been working at the intersection of economics and psychology and is one of the few people of whom it can be said that their work is equally respected and well known within both disciplines. This book brings together a selection of his papers focusing on what he calls "exotic preferences"—the disparate motives that drive human behavior. In addition to covering the history and methodology of behavioral economics, they also touch on a wide range of fascinating topics such as the motives that drive extreme athletes, our propensity to want to get unpleasant experiences out of the way so we can focus on the more pleasant, and the psychology of curiosity. There are also papers on social preferences, discussing the importance of perceptions of fairness in interpersonal interactions, intertemporal choice—the tradeoffs between costs and benefits occurring at different points in time—and the impact of emotion on economic decision making. An original introduction outlines Loewenstein's general approach to research, and there are short introductions to each paper outlining briefly when, how and why they came to be written, providing a fascinating and vivid insight into the process of intellectual creativity.
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Exotic Preferences: Behavioral Economics and Human Motivation

Exotic Preferences: Behavioral Economics and Human Motivation

by George Loewenstein
Exotic Preferences: Behavioral Economics and Human Motivation

Exotic Preferences: Behavioral Economics and Human Motivation

by George Loewenstein

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Overview

George Loewenstein is one of the pioneers of the rapidly growing field of behavioral economics. For over twenty years he has been working at the intersection of economics and psychology and is one of the few people of whom it can be said that their work is equally respected and well known within both disciplines. This book brings together a selection of his papers focusing on what he calls "exotic preferences"—the disparate motives that drive human behavior. In addition to covering the history and methodology of behavioral economics, they also touch on a wide range of fascinating topics such as the motives that drive extreme athletes, our propensity to want to get unpleasant experiences out of the way so we can focus on the more pleasant, and the psychology of curiosity. There are also papers on social preferences, discussing the importance of perceptions of fairness in interpersonal interactions, intertemporal choice—the tradeoffs between costs and benefits occurring at different points in time—and the impact of emotion on economic decision making. An original introduction outlines Loewenstein's general approach to research, and there are short introductions to each paper outlining briefly when, how and why they came to be written, providing a fascinating and vivid insight into the process of intellectual creativity.

Product Details

ISBN-13: 9780199257072
Publisher: Oxford University Press
Publication date: 09/20/2007
Pages: 688
Product dimensions: 9.10(w) x 5.90(h) x 1.70(d)

Table of Contents

Introduction George Loewenstein xi

Part I General Perspectives, History, and Methods

1 Because It Is There: The Challenge of Mountaineering ... for Utility Theory George Loewenstein 3

2 The Economics of Meaning Niklas Karlsson George Loewenstein Jane McCafferty 33

3 The Fall and Rise of Psychological Explanations in the Economics of Intertemporal Choice George Loewenstein 55

4 Adam Smith, Behavioral Economist Nava Ashraf Colin F. Camerer George Loewenstein 87

5 Experimental Economics form the Vantage-Point of Behavioural Economics George Loewenstein 107

6 The Psychology of Curiosity: A Review and Reinterpretation George Loewenstein 121

Part II Social Preferences

7 Social Utility and Decision Making in Interpersonal Contexts George Loewenstein Leigh Thompson Max H. Bazerman 181

8 Explaining the Bargaining Impasse: The Role of Self-Serving Biases Linda Babcock George Loewenstein 215

Part III Basic Research on Preferences

9 Preference Reversals Between Joint and Separate Evaluations of Options: A Review and Theoretical Analysis Christopher K. Hsee George F. Loewenstein Sally Blount Max H. Bazerman 241

10 "Coherent Arbitrariness": Stable Demand Curves without Stable Preferences Dan Ariely George Loewenstein Drazen Prelec 279

Part IV Predicting Tastes and Feelings

11 A Bias in the Prediction of Tastes George Loewenstein Daniel Adler 313

12 Mispredicting the Endowment Effect: Underestimation of Owners' Selling Prices by Buyers' Agents Leaf Van Boven George Loewenstein David Dunning 325

13 Projection Bias in Predicting Future Utility George Loewenstein Ted O'Donoghue Matthew Rabin 345

Part V Intertemporal Choice

14 Anticipation andthe Valuation of Delayed Consumption George Loewenstein 385

15 Anomalies in Intertemporal Choice: Evidence and an Interpretation George Loewenstein Drazen Prelec 411

16 Preferences for Sequences of Outcomes George F. Loewenstein Drazen Prelec 439

17 The Red and the Black: Mental Accounting of Savings and Debt Drazen Prelec George Loewenstein 481

Part VI Emotions

18 Out of Control: Visceral Influences on Behavior George Loewenstein 523

19 Risk as Feelings George F. Loewenstein Elke U. Weber Christopher K. Hsee Ned Welch 565

20 Investment Behavior and the Negative Side of Emotion Baba Shiv George Loewenstein Antoine Bechara Hanna Damasio Antonio R. Damasio 613

21 Heart Strings and Purse Strings: Carryover Effects of Emotions on Economic Decisions Jennifer S. Lerner Deborah A. Small George Loewenstein 625

22 Separate Neural Systems Value Immediate and Delayed Monetary Rewards Samuel M. McClure David I. Laibson George Loewenstein Jonathan D. Cohen 637

Index 651

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