Economic theory and Psychological Data: Bridging the Divide

Andrew Caplin

    Research output: Chapter in Book/Report/Conference proceedingChapter

    Abstract

    As models are often subjected to empirical testing to evaluate their ability to predict economically sound choices, these models are also solved by means of using optimization measures that are grounded on understanding both the quantitative and qualitative links of the actual choice data to the models. What sets economics apart from the other social sciences is how the decision-theoretic methodology brings about influential positive externalities. Although this aspect of economics seems to be well-organized, others would notice how classical decision theory does not integrate psychological factors. This chapter attempts to illustrate the developments that have furthered the use of nonstandard economic models while also accounting for the new forms of "psychological data" which involves eye movements, neurological responses, and other such indicators in expanding economic theory.

    Original languageEnglish (US)
    Title of host publicationThe Foundations of Positive and Normative Economics: A Hand Book
    PublisherOxford University Press
    ISBN (Electronic)9780199851768
    ISBN (Print)9780195328318
    DOIs
    StatePublished - Oct 3 2011

    Fingerprint

    Economics
    Psychological
    Economic theory
    Eye movements
    Psychological factors
    Decision theory
    Positive externalities
    Choice models
    Methodology
    Testing
    Social sciences

    Keywords

    • Classical decision theory
    • Decision-theoretic methodology
    • Economics
    • Nonstandard economic models
    • Psychological data
    • Social sciences

    ASJC Scopus subject areas

    • Economics, Econometrics and Finance(all)

    Cite this

    Caplin, A. (2011). Economic theory and Psychological Data: Bridging the Divide. In The Foundations of Positive and Normative Economics: A Hand Book Oxford University Press. https://doi.org/10.1093/acprof:oso/9780195328318.003.0015

    Economic theory and Psychological Data : Bridging the Divide. / Caplin, Andrew.

    The Foundations of Positive and Normative Economics: A Hand Book. Oxford University Press, 2011.

    Research output: Chapter in Book/Report/Conference proceedingChapter

    Caplin, A 2011, Economic theory and Psychological Data: Bridging the Divide. in The Foundations of Positive and Normative Economics: A Hand Book. Oxford University Press. https://doi.org/10.1093/acprof:oso/9780195328318.003.0015
    Caplin A. Economic theory and Psychological Data: Bridging the Divide. In The Foundations of Positive and Normative Economics: A Hand Book. Oxford University Press. 2011 https://doi.org/10.1093/acprof:oso/9780195328318.003.0015
    Caplin, Andrew. / Economic theory and Psychological Data : Bridging the Divide. The Foundations of Positive and Normative Economics: A Hand Book. Oxford University Press, 2011.
    @inbook{f3981034dee3457ba9e159aa57a096b3,
    title = "Economic theory and Psychological Data: Bridging the Divide",
    abstract = "As models are often subjected to empirical testing to evaluate their ability to predict economically sound choices, these models are also solved by means of using optimization measures that are grounded on understanding both the quantitative and qualitative links of the actual choice data to the models. What sets economics apart from the other social sciences is how the decision-theoretic methodology brings about influential positive externalities. Although this aspect of economics seems to be well-organized, others would notice how classical decision theory does not integrate psychological factors. This chapter attempts to illustrate the developments that have furthered the use of nonstandard economic models while also accounting for the new forms of {"}psychological data{"} which involves eye movements, neurological responses, and other such indicators in expanding economic theory.",
    keywords = "Classical decision theory, Decision-theoretic methodology, Economics, Nonstandard economic models, Psychological data, Social sciences",
    author = "Andrew Caplin",
    year = "2011",
    month = "10",
    day = "3",
    doi = "10.1093/acprof:oso/9780195328318.003.0015",
    language = "English (US)",
    isbn = "9780195328318",
    booktitle = "The Foundations of Positive and Normative Economics: A Hand Book",
    publisher = "Oxford University Press",
    address = "United Kingdom",

    }

    TY - CHAP

    T1 - Economic theory and Psychological Data

    T2 - Bridging the Divide

    AU - Caplin, Andrew

    PY - 2011/10/3

    Y1 - 2011/10/3

    N2 - As models are often subjected to empirical testing to evaluate their ability to predict economically sound choices, these models are also solved by means of using optimization measures that are grounded on understanding both the quantitative and qualitative links of the actual choice data to the models. What sets economics apart from the other social sciences is how the decision-theoretic methodology brings about influential positive externalities. Although this aspect of economics seems to be well-organized, others would notice how classical decision theory does not integrate psychological factors. This chapter attempts to illustrate the developments that have furthered the use of nonstandard economic models while also accounting for the new forms of "psychological data" which involves eye movements, neurological responses, and other such indicators in expanding economic theory.

    AB - As models are often subjected to empirical testing to evaluate their ability to predict economically sound choices, these models are also solved by means of using optimization measures that are grounded on understanding both the quantitative and qualitative links of the actual choice data to the models. What sets economics apart from the other social sciences is how the decision-theoretic methodology brings about influential positive externalities. Although this aspect of economics seems to be well-organized, others would notice how classical decision theory does not integrate psychological factors. This chapter attempts to illustrate the developments that have furthered the use of nonstandard economic models while also accounting for the new forms of "psychological data" which involves eye movements, neurological responses, and other such indicators in expanding economic theory.

    KW - Classical decision theory

    KW - Decision-theoretic methodology

    KW - Economics

    KW - Nonstandard economic models

    KW - Psychological data

    KW - Social sciences

    UR - http://www.scopus.com/inward/record.url?scp=84920753157&partnerID=8YFLogxK

    UR - http://www.scopus.com/inward/citedby.url?scp=84920753157&partnerID=8YFLogxK

    U2 - 10.1093/acprof:oso/9780195328318.003.0015

    DO - 10.1093/acprof:oso/9780195328318.003.0015

    M3 - Chapter

    SN - 9780195328318

    BT - The Foundations of Positive and Normative Economics: A Hand Book

    PB - Oxford University Press

    ER -