This book develops dynamic economic models using the perspective and analyticframework provided by psychological learning theory. This framework is used to resolve apparent contradictions between optimization theory, which lies at the heart of all modern economic theory, and day-to-day evidence that short-runeconomic behaviour cannot reasonably be described solely as the outcome of efficiently implemented self-interest. The author applies this viewpoint to a number of problem areas in which literal applications of maximization theory have not usually proved to be satisfactory. These include analyses of decision-making under uncertainty and gambling behaviour, the role of consumer-oriented advertising in influencing behaviour, the persistence of price dispersions in markets, and inflation. INDICE: 1. Introduction; 2. Models of convergence; 3. Behavior in the short run; 4. Uncertainty; 5. An application to state lottery games; 6. An application to the problem of search behavior; 7. Inflationary disequilibrium; 8. Advertising and imitation; 9. An application to migration; 10. Conclusions.
- ISBN: 978-0-521-06711-9
- Editorial: Cambridge University
- Encuadernacion: Rústica
- Páginas: 208
- Fecha Publicación: 26/06/2008
- Nº Volúmenes: 1
- Idioma: Inglés