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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Main Author:	Basu, Kaushik
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	CREDIT MARKETS UTILITY FUNCTION FINANCIAL FRAUD TRANSPORTATION INFRASTRUCTURE FINANCIAL PRODUCTS WELFARE ECONOMICS PEOPLE VULNERABLE PEOPLE UTILITY FUNCTIONS BUSINESS COMMUNITY LOAN SHARKS STOCK INFORMAL BANKING VILLAGE SALES INCOME INTEREST EXPECTATIONS BIAS INTEREST RATE DISCRIMINATION INEQUALITIES RECESSION POLITICAL ECONOMY WELFARE GAME THEORY INCENTIVES LOAN EQUILIBRIUM INDIFFERENCE CURVES FREE MARKETS CORRUPTION WEALTH SAVING BANKRUPTCY ECONOMIC ACTIVITY INTERNATIONAL BANK OLIGOPOLY LENDER DEVELOPMENT BIASES CHOICE ADVERTISING INFLUENCE EXPLOITATION SAVINGS MORTGAGES FINANCIAL PRODUCT CREDIT RATINGS COLLUSION DEVELOPMENT ECONOMICS MONEY EXTORTION PRODUCTS CHILD DEVELOPMENT EXPECTED RETURN EXTERNALITIES MONOPOLY FAILURES NORMAL PROFIT ECONOMIC INEQUALITY PAYMENT UTILITY THEORY MARKETS DEBT PUBLIC FINANCE DECISION MAKING ECONOMIC LIFE PRODUCT DIVIDENDS UTILITY APPLICATION PROCESS FINANCE DEVELOPMENT POLICY TAXES BANKS INVESTMENT BANKS HUMAN CAPITAL CAPITAL WAGES NASH EQUILIBRIUM FINANCIAL CRISIS DEBT OBLIGATIONS FAMILY VALUE GENDER BANK PATERNALISM CREDIT FREE MARKET DEMAND AGRICULTURE CONSUMERS PROPERTIES SALE ASSETS MARKET ECONOMIC THEORY EMPLOYERS ECONOMICS SECURITIES BUSINESS PEOPLE NEOCLASSICAL ECONOMICS TRADE INTERESTS GOODS THEORY INVESTMENT MONEYLENDER BANKRUPTCIES FINANCIAL MARKETS SUPPLY MARKETPLACE EMPLOYEE COMPETITIVE EQUILIBRIUM EARNINGS STUDENTS BORROWING INVESTMENTS INVISIBLE HAND FAMILIES INHERITANCE PROFITS ENTREPRENEUR OUTCOMES INEQUALITY EMPLOYEES
Online Access:	http://documents.worldbank.org/curated/en/2016/04/26285650/markets-manipulation-time-paradigm-shift http://hdl.handle.net/10986/24227

id	okr-10986-24227
recordtype	oai_dc
spelling	okr-10986-242272021-04-23T14:04:20Z Markets and Manipulation : Time for a Paradigm Shift? Basu, Kaushik CREDIT MARKETS UTILITY FUNCTION FINANCIAL FRAUD FINANCIAL FRAUD TRANSPORTATION INFRASTRUCTURE FINANCIAL PRODUCTS WELFARE ECONOMICS PEOPLE VULNERABLE PEOPLE UTILITY FUNCTIONS BUSINESS COMMUNITY LOAN SHARKS STOCK INFORMAL BANKING VILLAGE SALES INCOME INTEREST EXPECTATIONS BIAS INTEREST RATE DISCRIMINATION INEQUALITIES RECESSION POLITICAL ECONOMY WELFARE GAME THEORY INCENTIVES LOAN EQUILIBRIUM INDIFFERENCE CURVES FREE MARKETS CORRUPTION WEALTH SAVING BANKRUPTCY ECONOMIC ACTIVITY INTERNATIONAL BANK OLIGOPOLY LENDER TRANSPORTATION INFRASTRUCTURE LOAN SHARKS ECONOMIC ACTIVITY DEVELOPMENT BIASES CHOICE ADVERTISING INFLUENCE INFORMAL BANKING EXPLOITATION SAVINGS MORTGAGES FINANCIAL PRODUCT CREDIT RATINGS COLLUSION DEVELOPMENT ECONOMICS BUSINESS COMMUNITY MONEY EXTORTION PRODUCTS CHILD DEVELOPMENT EXPECTED RETURN EXTERNALITIES MONOPOLY FAILURES NORMAL PROFIT CHILD DEVELOPMENT ECONOMIC INEQUALITY PAYMENT UTILITY THEORY MARKETS DEBT PUBLIC FINANCE FINANCIAL PRODUCTS DECISION MAKING ECONOMIC LIFE PRODUCT DIVIDENDS UTILITY APPLICATION PROCESS UTILITY THEORY FINANCE DEVELOPMENT POLICY TAXES BANKS INVESTMENT BANKS HUMAN CAPITAL CAPITAL WAGES NASH EQUILIBRIUM POLITICAL ECONOMY FINANCIAL CRISIS DEBT OBLIGATIONS FAMILY VALUE GENDER BANK PATERNALISM CREDIT FREE MARKET DEMAND UTILITY FUNCTION AGRICULTURE CONSUMERS PROPERTIES DECISION MAKING SALE ASSETS MARKET FINANCIAL PRODUCT VULNERABLE PEOPLE ECONOMIC THEORY EMPLOYERS ECONOMICS SECURITIES BUSINESS PEOPLE ECONOMIC INEQUALITY NEOCLASSICAL ECONOMICS TRADE INTERESTS FINANCIAL CRISIS GOODS THEORY INVESTMENT MONEYLENDER BANKRUPTCIES FINANCIAL MARKETS DEBT OBLIGATIONS SUPPLY MARKETPLACE EMPLOYEE COMPETITIVE EQUILIBRIUM GAME THEORY EARNINGS NASH EQUILIBRIUM FREE MARKETS STUDENTS ECONOMIC LIFE DEVELOPMENT ECONOMICS BORROWING INVESTMENTS INVISIBLE HAND NEOCLASSICAL ECONOMICS INVESTMENT BANKS FAMILIES INHERITANCE PROFITS ENTREPRENEUR FINANCIAL MARKETS OUTCOMES DEVELOPMENT POLICY INEQUALITY EMPLOYEES 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. 2016-05-04T20:13:17Z 2016-05-04T20:13:17Z 2016-04 Working Paper http://documents.worldbank.org/curated/en/2016/04/26285650/markets-manipulation-time-paradigm-shift http://hdl.handle.net/10986/24227 English en_US Policy Research Working Paper;No. 7653 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	CREDIT MARKETS UTILITY FUNCTION FINANCIAL FRAUD FINANCIAL FRAUD TRANSPORTATION INFRASTRUCTURE FINANCIAL PRODUCTS WELFARE ECONOMICS PEOPLE VULNERABLE PEOPLE UTILITY FUNCTIONS BUSINESS COMMUNITY LOAN SHARKS STOCK INFORMAL BANKING VILLAGE SALES INCOME INTEREST EXPECTATIONS BIAS INTEREST RATE DISCRIMINATION INEQUALITIES RECESSION POLITICAL ECONOMY WELFARE GAME THEORY INCENTIVES LOAN EQUILIBRIUM INDIFFERENCE CURVES FREE MARKETS CORRUPTION WEALTH SAVING BANKRUPTCY ECONOMIC ACTIVITY INTERNATIONAL BANK OLIGOPOLY LENDER TRANSPORTATION INFRASTRUCTURE LOAN SHARKS ECONOMIC ACTIVITY DEVELOPMENT BIASES CHOICE ADVERTISING INFLUENCE INFORMAL BANKING EXPLOITATION SAVINGS MORTGAGES FINANCIAL PRODUCT CREDIT RATINGS COLLUSION DEVELOPMENT ECONOMICS BUSINESS COMMUNITY MONEY EXTORTION PRODUCTS CHILD DEVELOPMENT EXPECTED RETURN EXTERNALITIES MONOPOLY FAILURES NORMAL PROFIT CHILD DEVELOPMENT ECONOMIC INEQUALITY PAYMENT UTILITY THEORY MARKETS DEBT PUBLIC FINANCE FINANCIAL PRODUCTS DECISION MAKING ECONOMIC LIFE PRODUCT DIVIDENDS UTILITY APPLICATION PROCESS UTILITY THEORY FINANCE DEVELOPMENT POLICY TAXES BANKS INVESTMENT BANKS HUMAN CAPITAL CAPITAL WAGES NASH EQUILIBRIUM POLITICAL ECONOMY FINANCIAL CRISIS DEBT OBLIGATIONS FAMILY VALUE GENDER BANK PATERNALISM CREDIT FREE MARKET DEMAND UTILITY FUNCTION AGRICULTURE CONSUMERS PROPERTIES DECISION MAKING SALE ASSETS MARKET FINANCIAL PRODUCT VULNERABLE PEOPLE ECONOMIC THEORY EMPLOYERS ECONOMICS SECURITIES BUSINESS PEOPLE ECONOMIC INEQUALITY NEOCLASSICAL ECONOMICS TRADE INTERESTS FINANCIAL CRISIS GOODS THEORY INVESTMENT MONEYLENDER BANKRUPTCIES FINANCIAL MARKETS DEBT OBLIGATIONS SUPPLY MARKETPLACE EMPLOYEE COMPETITIVE EQUILIBRIUM GAME THEORY EARNINGS NASH EQUILIBRIUM FREE MARKETS STUDENTS ECONOMIC LIFE DEVELOPMENT ECONOMICS BORROWING INVESTMENTS INVISIBLE HAND NEOCLASSICAL ECONOMICS INVESTMENT BANKS FAMILIES INHERITANCE PROFITS ENTREPRENEUR FINANCIAL MARKETS OUTCOMES DEVELOPMENT POLICY INEQUALITY EMPLOYEES
spellingShingle	CREDIT MARKETS UTILITY FUNCTION FINANCIAL FRAUD FINANCIAL FRAUD TRANSPORTATION INFRASTRUCTURE FINANCIAL PRODUCTS WELFARE ECONOMICS PEOPLE VULNERABLE PEOPLE UTILITY FUNCTIONS BUSINESS COMMUNITY LOAN SHARKS STOCK INFORMAL BANKING VILLAGE SALES INCOME INTEREST EXPECTATIONS BIAS INTEREST RATE DISCRIMINATION INEQUALITIES RECESSION POLITICAL ECONOMY WELFARE GAME THEORY INCENTIVES LOAN EQUILIBRIUM INDIFFERENCE CURVES FREE MARKETS CORRUPTION WEALTH SAVING BANKRUPTCY ECONOMIC ACTIVITY INTERNATIONAL BANK OLIGOPOLY LENDER TRANSPORTATION INFRASTRUCTURE LOAN SHARKS ECONOMIC ACTIVITY DEVELOPMENT BIASES CHOICE ADVERTISING INFLUENCE INFORMAL BANKING EXPLOITATION SAVINGS MORTGAGES FINANCIAL PRODUCT CREDIT RATINGS COLLUSION DEVELOPMENT ECONOMICS BUSINESS COMMUNITY MONEY EXTORTION PRODUCTS CHILD DEVELOPMENT EXPECTED RETURN EXTERNALITIES MONOPOLY FAILURES NORMAL PROFIT CHILD DEVELOPMENT ECONOMIC INEQUALITY PAYMENT UTILITY THEORY MARKETS DEBT PUBLIC FINANCE FINANCIAL PRODUCTS DECISION MAKING ECONOMIC LIFE PRODUCT DIVIDENDS UTILITY APPLICATION PROCESS UTILITY THEORY FINANCE DEVELOPMENT POLICY TAXES BANKS INVESTMENT BANKS HUMAN CAPITAL CAPITAL WAGES NASH EQUILIBRIUM POLITICAL ECONOMY FINANCIAL CRISIS DEBT OBLIGATIONS FAMILY VALUE GENDER BANK PATERNALISM CREDIT FREE MARKET DEMAND UTILITY FUNCTION AGRICULTURE CONSUMERS PROPERTIES DECISION MAKING SALE ASSETS MARKET FINANCIAL PRODUCT VULNERABLE PEOPLE ECONOMIC THEORY EMPLOYERS ECONOMICS SECURITIES BUSINESS PEOPLE ECONOMIC INEQUALITY NEOCLASSICAL ECONOMICS TRADE INTERESTS FINANCIAL CRISIS GOODS THEORY INVESTMENT MONEYLENDER BANKRUPTCIES FINANCIAL MARKETS DEBT OBLIGATIONS SUPPLY MARKETPLACE EMPLOYEE COMPETITIVE EQUILIBRIUM GAME THEORY EARNINGS NASH EQUILIBRIUM FREE MARKETS STUDENTS ECONOMIC LIFE DEVELOPMENT ECONOMICS BORROWING INVESTMENTS INVISIBLE HAND NEOCLASSICAL ECONOMICS INVESTMENT BANKS FAMILIES INHERITANCE PROFITS ENTREPRENEUR FINANCIAL MARKETS OUTCOMES DEVELOPMENT POLICY INEQUALITY EMPLOYEES Basu, Kaushik Markets and Manipulation : Time for a Paradigm Shift?
relation	Policy Research Working Paper;No. 7653
description	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.
format	Working Paper
author	Basu, Kaushik
author_facet	Basu, Kaushik
author_sort	Basu, Kaushik
title	Markets and Manipulation : Time for a Paradigm Shift?
title_short	Markets and Manipulation : Time for a Paradigm Shift?
title_full	Markets and Manipulation : Time for a Paradigm Shift?
title_fullStr	Markets and Manipulation : Time for a Paradigm Shift?
title_full_unstemmed	Markets and Manipulation : Time for a Paradigm Shift?
title_sort	markets and manipulation : time for a paradigm shift?
publisher	World Bank, Washington, DC
publishDate	2016
url	http://documents.worldbank.org/curated/en/2016/04/26285650/markets-manipulation-time-paradigm-shift http://hdl.handle.net/10986/24227
_version_	1764455984361635840

Markets and Manipulation : Time for a Paradigm Shift?

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