The Making of Behavioral Development Economics
A core insight from early behavioral economics is that much of human judgment and behavior is influenced by "fast thinking" that is intuitive, associative, and automatic; very little human thinking resembles the rational thinking that cha...
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/708521516820237922/The-making-of-behavioral-development-economics http://hdl.handle.net/10986/29283 |
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okr-10986-292832021-06-08T14:42:48Z The Making of Behavioral Development Economics Demeritt, Allison Hoff, Karla BEHAVIORAL ECONOMICS CULTURE SCHEMA COLLECTIVE DECISION PSYCHOLOGICAL INFUENCES SOCIAL INFLUENCES DECISION MAKING A core insight from early behavioral economics is that much of human judgment and behavior is influenced by "fast thinking" that is intuitive, associative, and automatic; very little human thinking resembles the rational thinking that characterizes homo economicus. What is less well-recognized is that innate reliance on cognitive shortcuts means that cultural mental models --categories, concepts, social identities, narratives, and worldviews -- profoundly influence judgment and behavior. Individuals have a cultural "toolkit" or "repertoire" of mental models that they use to perceive and interpret a situation and construct a response. Many researchers have connected cultural mental models to economic development, yet they rarely identify their research findings as "behavioral" economics. This research constitutes a second strand of behavioral economics that illuminates the tight interlinkages between preferences, culture, and institutions and points to new policy opportunities. It brings the discipline almost full circle back to 18th and 19th century perspectives. This essay cautions against strong reductionism in which sociological influences on decision making are squeezed into a rational actor model. 2018-01-31T19:54:10Z 2018-01-31T19:54:10Z 2018-01 Working Paper http://documents.worldbank.org/curated/en/708521516820237922/The-making-of-behavioral-development-economics http://hdl.handle.net/10986/29283 English Policy Research Working Paper;No. 8317 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 |
| topic |
BEHAVIORAL ECONOMICS CULTURE SCHEMA COLLECTIVE DECISION PSYCHOLOGICAL INFUENCES SOCIAL INFLUENCES DECISION MAKING |
| spellingShingle |
BEHAVIORAL ECONOMICS CULTURE SCHEMA COLLECTIVE DECISION PSYCHOLOGICAL INFUENCES SOCIAL INFLUENCES DECISION MAKING Demeritt, Allison Hoff, Karla The Making of Behavioral Development Economics |
| relation |
Policy Research Working Paper;No. 8317 |
| description |
A core insight from early behavioral
economics is that much of human judgment and behavior is
influenced by "fast thinking" that is intuitive,
associative, and automatic; very little human thinking
resembles the rational thinking that characterizes homo
economicus. What is less well-recognized is that innate
reliance on cognitive shortcuts means that cultural mental
models --categories, concepts, social identities,
narratives, and worldviews -- profoundly influence judgment
and behavior. Individuals have a cultural
"toolkit" or "repertoire" of mental
models that they use to perceive and interpret a situation
and construct a response. Many researchers have connected
cultural mental models to economic development, yet they
rarely identify their research findings as
"behavioral" economics. This research constitutes
a second strand of behavioral economics that illuminates the
tight interlinkages between preferences, culture, and
institutions and points to new policy opportunities. It
brings the discipline almost full circle back to 18th and
19th century perspectives. This essay cautions against
strong reductionism in which sociological influences on
decision making are squeezed into a rational actor model. |
| format |
Working Paper |
| author |
Demeritt, Allison Hoff, Karla |
| author_facet |
Demeritt, Allison Hoff, Karla |
| author_sort |
Demeritt, Allison |
| title |
The Making of Behavioral Development Economics |
| title_short |
The Making of Behavioral Development Economics |
| title_full |
The Making of Behavioral Development Economics |
| title_fullStr |
The Making of Behavioral Development Economics |
| title_full_unstemmed |
The Making of Behavioral Development Economics |
| title_sort |
making of behavioral development economics |
| publisher |
World Bank, Washington, DC |
| publishDate |
2018 |
| url |
http://documents.worldbank.org/curated/en/708521516820237922/The-making-of-behavioral-development-economics http://hdl.handle.net/10986/29283 |
| _version_ |
1764468957462396928 |