Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
Hostname: page-component-8448b6f56d-t5pn6 Total loading time: 0 Render date: 2024-04-19T10:27:28.663Z Has data issue: false hasContentIssue false

1 - Theory and Method in Economics and Psychology

Levels and Depth of Explanation

from Part I - Theory & Method

Published online by Cambridge University Press:  01 February 2018

By
Denis Hilton
Edited by
Alan Lewis
Alan Lewis
Affiliation:
University of Bath
Get access

Summary

A summary is not available for this content so a preview has been provided. Please use the Get access link above for information on how to access this content.
Image of the first page of this content. For PDF version, please use the ‘Save PDF’ preceeding this image.'
Type
Chapter
Information
The Cambridge Handbook of Psychology and Economic Behaviour , pp. 9 - 41
Publisher: Cambridge University Press
Print publication year: 2018

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

1.10 References

Ajzen, I., & Fishbein, M. (1980). Understanding Attitudes and Predicting Social Behaviour. Englewood Cliffs, NJ: Prentice Hall.Google Scholar
Akerlof, G. A. (1970). The Market for “Lemons”: Quality Uncertainty and the Market Mechanism. Quarterly Journal of Economics, 84, 488–500.CrossRefGoogle Scholar
Alicke, M. and Sedikides, C. (2009). Self-enhancement and Self-protection: What They Are and What They Do. European Review of Social Psychology, 20(1), 1–48.CrossRefGoogle Scholar
Alpert, M. and Raiffa, H. (1982). A Progress Report on the Training of Probability Assessors, in Kahneman, D., Slovic, P. and Tversky, A. (eds.), Judgement under Uncertainty: Heuristics and Biases. Cambridge: Cambridge University Press, pp. 294–305.CrossRefGoogle Scholar
Ariely, D., Bracha, A. and Meier, S. (2009). Doing Good or Doing Well? Image Motivation and Monetary Incentives in Behaving Prosocially. American Economic Review, 99, 544–555.CrossRefGoogle Scholar
Attia, C. Hilton, D. (2013). Finance sur le divan. Paris: Optrakan Editions.Google Scholar
Barber, B. M. and Odean, T. (2001). Boys Will Be Boys: Gender, Overconfidence, and Common Stock Investment. Quarterly Journal of Economics, 116, 261–292.CrossRefGoogle Scholar
Baron, R. M. and Kenny, D. A. (1986). The Moderator–Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations. Journal of Personality and Social Psychology, 51, 1173–1182.CrossRefGoogle Scholar
Becker, G. (1993). Nobel Lecture: The Economic Way of Looking at Behavior. Journal of Political Economy, 101, 385–409.CrossRefGoogle Scholar
Bénabou, R. and Tirole, J. (2003). Self-Knowledge and Self-Regulation: An Economic Approach, in Brocas, I. and Carrillo, J. D (eds.), The Psychology of Economic Decisions: Volume 1: Rationality and Well-being. Oxford: Oxford University Press, pp. 137–168.CrossRefGoogle Scholar
Bénabou, R. and Tirole, J. (2006). Incentives and Prosocial Behavior. American Economic Review, 96, 1652–1678.CrossRefGoogle Scholar
Bénabou, R. and Tirole, J. (2011). Identity, Morals and Taboos: Beliefs as Assets. Quarterly Journal of Economics, 126(2), 805–855.CrossRefGoogle ScholarPubMed
Bénabou, R. and Tirole, J. (2016). Mindful Economics: The Production, Consumption, and Value of Beliefs. Journal of Economic Perspectives, 30, 141–164.CrossRefGoogle Scholar
Benos, A. V. (1998). Aggressiveness and Survival of Overconfident Traders. Journal of Financial Markets, 1(3), 353–383.CrossRefGoogle Scholar
Berthoz, S., Armony, J. L., Blair, R. J. and Dolan, R. J. (2002). An fMRI Study of Intentional and Unintentional (Embarrassing) Violations of Social Norms. Brain, 125, 1696–1708.CrossRefGoogle ScholarPubMed
Biais, B. and Pouget, S. (1999). Microstructure, Incentives and Convergence to Equilibrium in Experimental Financial Markets. Working paper, Toulouse University.Google Scholar
Biais, B, Hilton, D., Pouget, S. and Mazurier, K. (2005). Judgmental Overconfidence, Self-Monitoring and Trading Performance in an Experimental Financial Market. Review of Economic Studies, 72, 297–312.CrossRefGoogle Scholar
Breiter, H. C., Aharon, I., Kahneman, D., Dale, A. and Shizgal, P. (2001). Functional Imaging of Neural Responses to Expectancy and Experience of Monetary Gains and Losses. Neuron, 30(2), 619–639.CrossRefGoogle Scholar
Bremzen, A., Khokhlova, E., Suvorov, A. and Van de Ven, J. (2015). Bad News: An Experimental Study on the Informational Effects of Rewards. Review of Economics and Statistics, 97(1), 55–70.CrossRefGoogle Scholar
Bruni, L. and Sugden, R. (2007). The Road Not Taken: How Psychology Was Removed from Economics, and How It Might Be Brought Back. Economic Journal, 117(516), 146–173.CrossRefGoogle Scholar
Bruner, J. S., and Tagiuri, R. (1954). The Perception of People. In Lindzey, G. (ed.), Handbook of Social Psychology, Vol. 2. Cambridge, MA: Addison-Wesley, pp. 634–654.Google Scholar
Burgoyne, C. B. and Routh, D. A. (1991). Constraints on the Use of Money as a Gift at Christmas: The Role of Status and Intimacy. Journal of Economic Psychology, 12, 47–69.CrossRefGoogle Scholar
Buscato, T., Noury, F., Raynaud, M. and Rocher, A. (2004). Effets des incitations financières sur la motivation dans les domaines sacrés et profanes. Mémoire de recherche, University of Toulouse-II.Google Scholar
Camerer, C. (2000). Prospect Theory in the Wild: Evidence from the Field, in Kahneman, D. and Tversky, A. (eds.), Choices, Values and Frames. Cambridge: Cambridge University Press, pp. 288–300.CrossRefGoogle Scholar
Camerer, C. and Hogarth, R. M. (1999). The Effects of Financial Incentives in Experiments: A Review and Capital–Labor–Production Framework. Journal of Risk and Uncertainty, 19, 7–42.CrossRefGoogle Scholar
Camerer, C., Loewenstein, G. and Prelec, D. (2005). Neuroeconomics: How Neuroscience Can Inform Economics. Journal of Economic Literature, 43, 9–64.CrossRefGoogle Scholar
Chen, B. and Pearl, J. (2013). Regression and Causation: A Critical Examination of Six Econometrics Textbooks. Real-World Economics Review, (65), 2–20.Google Scholar
Cheng, I-H., Raina, S. and Xiong, W. (2014). Wall Street and the Housing Bubble. American Economic Review, 104(9), 2797–2829.CrossRefGoogle Scholar
Croson, R. (2005). The Method of Experimental Economics, in Carnevale, P. and de Dreu, C. W. (eds.), International Negotiations: Research Methods in Negotiation and Social Conflict, 10, 131–148.CrossRefGoogle Scholar
Daniel, K., Hirshleifer, D. and Subrahmanyam, A. (1998). Investor Psychology and Security Market Under- and Overreactions. Journal of Finance, 53, 1839–1885.CrossRefGoogle Scholar
De Bondt, W. and Thaler, R. (1985). Does the Stock Market Overreact? Journal of Finance, 40(3), 793–808.CrossRefGoogle Scholar
De Hooge, I. E., Zeelenberg, M. and Breugelmans, S. M. (2007). Moral Sentiments and Cooperation: Differential Influences of Shame and Guilt. Cognition and Emotion, 21(5), 1025–1042.CrossRefGoogle Scholar
De Quervain, D., Fischbacher, U., Treyer, , etc. (2004). The Neural Basis of Altruistic Punishment. Science, 305, 1254–1258.CrossRefGoogle ScholarPubMed
Fehr, E., Fischbacher, U., & Kosfeld, M. (2005). Neuroeconomic Foundations of Trust and Social Preferences, IZA Discussion Papers, No. 1641.Google Scholar
Fehr, E. and Schmidt, K. M. (2006). The Economics of Fairness, Reciprocity and Altruism – Experimental Evidence and New Theories. Handbook of the Economics of Giving, Altruism and Reciprocity, 1 615–691.CrossRefGoogle Scholar
Festinger, L. and Carlsmith, J. M. (1959). Cognitive Consequences of Forced Compliance. Journal of Abnormal and Social Psychology, 58, 203–210.CrossRefGoogle ScholarPubMed
Forsyth, R., Nelson, F., Neumann, G. R. and Wright, J. (1992). Anatomy of an Experimental Stock Market. American Economic Review, 82, 1142–1161.Google Scholar
Freedman, J. L. and Fraser, S. C. (1966). Compliance without Pressure: The Foot-in-the-Door Technique. Journal of Personality and Social Psychology, 4(2), 195–202.CrossRefGoogle ScholarPubMed
Frey, B. S. (1997). Not Just for the Money: An Economic Theory of Personal Motivation. Cheltenham: Edward Elgar.Google Scholar
Frey, B. S. and Stutzer, A. (2002). Happiness and Economics: How the Economy and Institutions Affect Human Well-being. Princeton: Princeton University Press.CrossRefGoogle Scholar
Gehring, W. J. and Willoughby, A. R. (2002). The Medial Frontal Cortex and the Rapid Processing of Monetary Gains and Losses. Science, 295, 2279–2282.CrossRefGoogle ScholarPubMed
Gigerenzer, G., Hoffrage, U. and Kleinbölting, H. (1991). Probabilistic Mental Models: A Brunswikian Theory of Confidence. Psychological Review, 98, 506–528.CrossRefGoogle ScholarPubMed
Glaser, M. and Weber, M. (2007). Overconfidence and Trading Volume. Geneva Risk and Insurance Review, 32(1), 1–36.CrossRefGoogle Scholar
Gneezy, U. and Rusticini, A. (2000). Pay Enough or Don’t Pay At All. Quarterly Journal of Economics, 115(3), 797–810.CrossRefGoogle Scholar
Hacking, I. (1983). Representing and Intervening: Introductory Topics in the Philosophy of Natural Science. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Harré, R. (1988). Modes of Explanation, in Hilton, D. J. (ed.), Contemporary Science and Natural Explanation: Commonsense Conceptions of Causality. Brighton: Harvester Press and New York: New York University Press, pp. 129–144.Google Scholar
Herndon, T., Ash, M. and Pollin, R. (2013). Does High Public Debt Consistently Stifle Economic Growth? A Critique of Reinhart and Rogoff. Cambridge Journal of Economics, 1 of 23 doi:10.1093/cje/bet075Google Scholar
Hertwig, R. and Ortmann, A. (2001). Experimental Practices in Economics: A Methodological Challenge for Psychologists. Behavioral and Brain Sciences, 24, 383–451.CrossRefGoogle ScholarPubMed
Hertwig, R. and Ortmann, A. (2003). Economists’ and Psychologists’ Experimental Practices: How They Differ, Why They Differ, and How They Could Converge, in Brocas, I. and Carrillo, J. D (eds.), The Psychology of Economic Decisions: Volume 1: Rationality and Well-being. Oxford: Oxford University Press, pp. 253–272.CrossRefGoogle Scholar
Hesslow, G. (1983). Explaining Differences and Weighting Causes. Theoria, 49 (2), 87–111.CrossRefGoogle Scholar
Hesslow, G. (1988). The Problem of Causal Selection, in Hilton, D. J. (ed.), Contemporary Science and Natural Explanation: Commonsense Conceptions of Causality. Brighton: Harvester Press, pp. 11–32.Google Scholar
Hilton, D. J. (2001). Psychology and the Financial Markets: Applications to Trading, Dealing and Investment Analysis. Journal of Psychology and Financial Markets, 2, 37–53.CrossRefGoogle Scholar
Hilton, D. J. (2006). Overconfidence, Trading and Entrepreneurship: Cognitive and Cultural Processes in Risk-Taking, in Topol, R. and Walliser, B. (eds.), Cognitive Economics: New Trends Contributions to Economic Analysis, Volume 280, pp. 225–235.Google Scholar
Hilton, D. J. (2007). Causal Explanation: From Social Perception to Knowledge-Based Attribution, in Kruglanski, A. and Higgins, E. T. (eds.), Social Psychology: Handbook of Basic Principles (2nd edition). New York: Guilford Press, pp. 232–253.Google Scholar
Hilton, D. J. (2012). The Emergence of Cognitive Social Psychology: A Historical Analysis. In Stroebe, W. and Kruglanski, A. (eds.), Handbook of the History of Social Psychology. Philadelphia: Psychology Press, pp. 45–80.Google Scholar
Hilton, D. J. (2017). Social Attribution and Explanation, in Waldmann, M. (ed.), The Oxford Handbook of Causal Reasoning. Oxford: Oxford University Press, pp. 645–674.Google Scholar
Hilton, D. J., Regner, I., Cabantous, L., Charalambides, L. and Vautier, S. (2011). Do Positive Illusions Predict Overconfidence in Judgment? A Test Using Interval Production and Probability Evaluation Measures of Miscalibration. Journal of Behavioral Decision Making, 24, 117–139.CrossRefGoogle Scholar
Joosten, A., van Dijke, M., Van Hiel, A. and De Cremer, D. (2014). Feel Good, Do-Good!? On Consistency and Compensation in Moral Self-Regulation. Journal of Business Ethics, 123 (1), 71–84.Google Scholar
Kagel, J. H., Battalio, R. C., Rachlin, H. and Green, L. (1981). Demand Curves for Animal Consumers. Quarterly Journal of Economics, 96, 1–13.CrossRefGoogle Scholar
Kahneman, D. E., Knetsch, J. L. and Thaler, R. E. (1986). Experimental Tests of the Endowment Effect and the Coase Theorem. Journal of Political Economy, 98, 25–48.Google Scholar
Kahneman, D. E. and Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk. Econometrica, 47, 263–291.CrossRefGoogle Scholar
Lewin, S. B. (1996). Economics and Psychology: Lessons for Our Own Day from the Early Twentieth Century. Journal of Economic Literature, 34, 1293–1323.Google Scholar
Lewis, A. (2010). The Credit Crunch: Ideological, Psychological and Epistemological Perspectives. Journal of Socio-Economics, 39, 127–131.CrossRefGoogle Scholar
Lipton, P. (1991). Contrastive Explanation and Causal Triangulation. Philosophy of Science, 58(4), 687–697.CrossRefGoogle Scholar
Lyons, J. (1977). Semantics, Vol. 1. Cambridge: Cambridge University Press.Google Scholar
List, J. A. (2004). Neoclassical Theory vs. Prospect Theory: Evidence from the Marketplace. Econometrica, 72, 615–625.CrossRefGoogle Scholar
Marr, D. (1982). Vision: A Computational Investigation into the Human Representation and Processing of Visual Information. San Francisco, CA: W. H. Freeman.Google Scholar
Mazar, N. and Zhong, C.-B (2010). Do Green Products Make Us Better People? Psychological Science, 21 (4), 494–498.CrossRefGoogle ScholarPubMed
McKenzie, C. (1997). What Are the Motives? A Problem with Evidence in the Work of Richard Thaler. Journal of Economic Psychology, 18, 123–135.CrossRefGoogle Scholar
Mill, J. S. (1872/1973). System of Logic, in J. M. Robson (ed.), Collected Works of John Stuart Mill (8th ed., Vols. 7 and 8). Toronto: University of Toronto Press. (Original edition published 1872).Google Scholar
Moore, D. A. and Healy, P. J. (2008). The Trouble with Overconfidence. Psychological Review, 115, 502–517.CrossRefGoogle ScholarPubMed
Nowak, A., Szamrej, J., and Latané, B. (1990). From Private Attitude to Public Opinion: A Dynamic Theory of Social Impact. Psychological Review, 97(3), 362.CrossRefGoogle Scholar
Odean, T. (1998). Volume, Volatility, Price and Profit: When All Traders Are Above Average. Journal of Finance, 53, 1887–1934.CrossRefGoogle Scholar
Open Science Collaboration. (2015). Estimating the Reproducibility of Psychological Science. Science, 349(6251), aac4716.Google Scholar
Panzone, L., Hilton, D., Sale, L. and Cohen, D. (2016). Socio-demographics, Implicit Attitudes, Explicit Attitudes, and Sustainable Consumption in Supermarket Shopping. Journal of Economic Psychology, 55, 77–95.CrossRefGoogle Scholar
Payne, J., Bettman, J. W. and Johnson, E. J. (1993). The Adaptive Decision Maker. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Piketty, T. and Saez, E. (2014). Inequality in the Long Run. Science, 344(6186), 838–843.CrossRefGoogle ScholarPubMed
Pindyck, R. S. and Rubinfield, D. L. (1998). Microeconomics, 4th edition. Upper Saddle River, NJ: Prentice Hall.Google Scholar
Platt, J. R. (1964). Strong Inference. Science, 146, 347–353.CrossRefGoogle ScholarPubMed
Plott, C., and Sunder, S., 1988. Rational Expectations and the Aggregation of Diverse Information in Laboratory Security Markets. Econometrica, 56(5), 1085–1118.CrossRefGoogle Scholar
Popper, K. R. (1971). Objective Knowledge. Oxford: Oxford University Press.Google Scholar
Preacher, K. J. and Hayes, A. F. (2008). Asymptotic and Resampling Strategies for Assessing and Comparing Indirect Effects in Multiple Mediator Models. Behavior Research Methods, 40(3), 879–891.CrossRefGoogle ScholarPubMed
Rabin, M. (2002). A Perspective on Psychology and Economics. European Economic Review, 46: 657–685.CrossRefGoogle Scholar
Reinhart, C. M. and Rogoff, K. S. (2010). Growth in a Time of Debt. American Economic Review, 100(2), 573–578.CrossRefGoogle Scholar
Rilling, J. K. Sanfey, A. G., Aronson, J. A., Nystrom, L. E. and Cohen, J. D. 2003. Opposing Bold Responses to Reciprocated and Unreciprocated Altruism in Putative Reward Pathways. Neuroreport 15(16), 239–243.Google Scholar
Rusticini, A. (2005). Introduction. Neuroeconomics: Present and Future. Games and Economic Behavior, 52, 201–212.CrossRefGoogle Scholar
Sanfey, A. G., Rilling, J. K., Aronson, J. A., Nystrom, L. E. and Cohen, J. D. (2003). The Neural Basis of Economic Decision-Making in the Ultimatum Game. Science, 300, 1755–1758.CrossRefGoogle ScholarPubMed
Shefrin, H. and Statman, M. (1985). The Disposition to Sell Winners Too Early and Ride Losers Too Long: Theory and Evidence. Journal of Finance, 40, 777–790.CrossRefGoogle Scholar
Smith, A. (1759/2002). The Theory of Moral Sentiments, 6th edition (ed. Haakonssen, K.). Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Smith, A. (1776/1993). An Inquiry into the Nature and Causes of the Wealth of Nations (ed. Sutherland, K.). Oxford: Oxford University Press.Google Scholar
Smith, R. H., Webster, J. Parrott, M., , W. G. and Eyre, H. L. (2002). The Role of Public Exposure in Moral and Nonmoral Shame and Guilt. Journal of Personality and Social Psychology, 83 (1), 138–159.CrossRefGoogle ScholarPubMed
Stroebe, W., Postmes, T. and Spears, R. (2012). Scientific Misconduct and the Myth of Self-Correction in Science. Perspectives on Psychological Science, 7(6), 670–688.CrossRefGoogle ScholarPubMed
Sugden, R. (2000). Credible Worlds: The Status of Theoretical Models in Economics. Journal of Economic Methodology, 7, 1–31.CrossRefGoogle Scholar
Sugden, R. (2005a). Experiments as Exhibits and Experiments as Tests. Journal of Economic Methodology, 12(2), 291–312.CrossRefGoogle Scholar
Sugden, R. (2005b). Experiment, Theory World: A Symposium on the Role of Experiments in Economics. Journal of Economic Methodology, 12(2), 177–184.CrossRefGoogle Scholar
Taylor, S. and Brown, J. (1988). Illusion and Well Being: A Social Psychological Perspective on Mental Health. Psychological Bulletin, 103, 193–210.CrossRefGoogle ScholarPubMed
Tetlock, P. E., Kristel, O. V., Elson, S. B., Green, M. C. and Lerner, J. S. (2000). The Psychology of the Unthinkable: Taboo Trade-offs, Forbidden Base-Rates, and Heretical Counterfactuals. Journal of Personality and Social Psychology, 78, 853–870.CrossRefGoogle ScholarPubMed
Thaler, R. and Sunstein, C. R. (2008). Nudge: Improving Decisions about Health, Wealth, and Happiness. New Haven, CT: Yale University Press.Google Scholar
Thorndike, E. L. (1911). Animal Intelligence. New York: Macmillan.Google Scholar
Turgot, A. R. J. (1761). Le commerce des grains. Reprinted in Vigreux, P. (ed., 1947), Turgot: Textes choisis. Paris: Dalloz.Google Scholar
Valenzuela, A., Srivastava, J. and Lee, S. (2005). The Role of Cultural Orientation in Bargaining under Incomplete Information: Differences in Causal Attributions. Organizational Behavior and Human Decision Processes, 96, 72–88.CrossRefGoogle Scholar
Weiner, B. (1985). “Spontaneous” Causal Thinking. Psychological Bulletin, 109, 74–84.CrossRefGoogle Scholar

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×