Markets and Manipulation : Time for a Paradigm Shift?
There is a growing appreciation in economics that people have emotional vulnerabilities, commitments to social norms, and systematic irrationalities, which impact their decision making and choice in the marketplace. The flip side of this is that hu...
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/04/26285650/markets-manipulation-time-paradigm-shift http://hdl.handle.net/10986/24227 |
| Summary: | There is a growing appreciation in
economics that people have emotional vulnerabilities,
commitments to social norms, and systematic irrationalities,
which impact their decision making and choice in the
marketplace. The flip side of this is that human beings are
susceptible to being manipulated by unscrupulous agents who
are single-minded about marketing their services and wares.
This paper reviews George Akerlof and Robert Shiller's
book, Phishing for Phools: The Economics of Manipulation and
Deception, alongside other writings in the field, and
discusses how this research agenda can be taken forward. The
paper shows how this new research can shed light on the
ubiquity of corruption in so many societies, and proposes
ideas for controlling corruption. |
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