A Course in Behavioral Economics

Angner, Erik

doi:10.1007/978-1-137-51293-2

Cited by 67 publications

(46 citation statements)

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“…Unlike in traditional economics, bounded rationality is commonly assumed in behavioral economics [1][2][3][4][5][6][7][8][9] in that decisions cannot be made rationally, thereby resulting in cognitive biases, as pointed out by Kahneman [1], Tversky and Kahneman [2] and Kahneman and Tversky [3]. Kahneman and Tversky [3] stated that the cognitive information processing in humans is conducted through either of the following processes.…”

Section: Introductionmentioning

confidence: 99%

Influence of Cognitive Biases in Distorting Decision Making and Leading to Critical Unfavorable Incidents

Murata

Nakamura

Karwowski

2015

Safety

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Abstract:On the basis of the analyses of past cases, we demonstrate how cognitive biases are ubiquitous in the process of incidents, crashes, collisions or disasters, as well as how they distort decision making and lead to undesirable outcomes. Five case studies were considered: a fire outbreak during cooking using an induction heating (IH) cooker, the KLM Flight 4805 crash, the Challenger space shuttle disaster, the collision between the Japanese Aegis-equipped destroyer "Atago" and a fishing boat and the Three Mile Island nuclear power plant meltdown. We demonstrate that heuristic-based biases, such as confirmation bias, groupthink and social loafing, overconfidence-based biases, such as the illusion of plan and control, and optimistic bias; framing biases majorly contributed to distorted decision making and eventually became the main cause of the incident, crash, collision or disaster. Therefore, we concluded that, in addition to human factors or ergonomics approaches, recognition and elimination of cognitive biases is indispensable for preventing incidents, crashes, collisions or disasters from occurring.

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Section: Introductionmentioning

confidence: 99%

Influence of Cognitive Biases in Distorting Decision Making and Leading to Critical Unfavorable Incidents

Murata

Nakamura

Karwowski

2015

Safety

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“…The field of behavioural economics has increased the realism of the psychological underpinnings of economic analysis, improving substantially its explanatory power (Camerer & Loewenstein, 2011). Behavioural economics has not only transformed traditional economics, but it has also had far-reaching implications for many other fields, including psychology, political sciences, health, law, education, and marketing (see Angner, 2012;Cartwright, 2014;Dhami, 2016;Hastie & Dawes, 2010; Kahneman, 2011, for reviews). Nevertheless, despite the popularity of behavioural economics, the field has not yet been applied explicitly to the study of judgements and decision-making processes in the context of music listening and music-related phenomena.…”

Section: Discussionmentioning

confidence: 99%

The busking experiment: A field study measuring behavioral responses to street music performances.

Anglada-Tort

Thueringer

Omigie

2019

Psychomusicology: Music, Mind, and Brain

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A field experiment was conducted with a professional busker in the London Underground over the course of 24 days. Its aim was to investigate the extent to which performative aspects influence behavioural responses to music street performances. Two aspects of the performance were manipulated: familiarity of the music (familiar vs. unfamiliar) and body movements (expressive vs. restricted). The amount of money donated and number of people who donated were recorded. A total of 278 people donated over the experiment. The music stimuli, which was selected in an online study to differ only in familiarity, had been previously recorded by the busker. During the experimental sessions, the busker lip-synced to the pre-recorded recordings. Thus, the audio input in the experiment remained identical across sessions and the only variables that changed across conditions were the familiarity of the music and the expressivity of performed body movements. The results indicated that neither music familiarity nor performer's body movements had a significant impact on the amount of money donated (Rm 2 = .033) nor the number of donors (Rm 2 = .023). These results do not support previous literature on the influence of familiarity and performers' body movements, typically conducted in lab and artificial environments. The findings are further discussed with regard to potential extraneous variables that are crucial to control for (i.e., location of the performance, physical appearance, the bandwagon effect) and the advantages of field versus laboratory experiments.A novel research framework to study music judgements and behaviour is introduced, namely, the behavioural economics of music.

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“…Angner defines economics as "the manner in which people make choices under conditions of scarcity and the results of those choices for society at large" [27]. In Anger's textbook Adam Smith is considered the founder of modern economics and author of influential books like The Wealth of Nations and The Theory of Moral Sentiments.…”

Section: Financial Riskmentioning

confidence: 99%

Decision-making in Risk Management

Wright¹

2019

Perspectives on Risk, Assessment and Management Paradigms

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The definition of risk introduced in the ISO 31000 standard of 2009 (2018) is uncertain goal achievement; thus, both negative and positive outcomes can be considered. It also implies that risk is not limited to life and health, but may cover all goals of a company. Risk management thus becomes a question of achieving and optimizing multiple goals. Since safety is but one of several considerations, safety may lose out to other more easily measured objectives of a company, such as economics and compliance with regulatory requirements. Risk analyses have a long history of quantification, a tradition that for various reasons has waned and should be revived if safety goals are to be treated together with other goals of a company. The extended scope affects not only company owners and employees but also neighbors, the local community, and the society at large. The stochastic nature of risk and the considerable time lap between decisions and the multiattributed consequences implies that managing risk is exposed to cognitive biases of many sorts. Risk management should be based on a quantitative approach to risk analysis as a protection against the many cognitive biases likely to be present, and managers should be trained to recognize the most common cognitive biases and decision pitfalls.

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A Course in Behavioral Economics

Cited by 67 publications

References 0 publications

Influence of Cognitive Biases in Distorting Decision Making and Leading to Critical Unfavorable Incidents

Influence of Cognitive Biases in Distorting Decision Making and Leading to Critical Unfavorable Incidents

The busking experiment: A field study measuring behavioral responses to street music performances.

Decision-making in Risk Management

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