Abstract

Behavioural economics, broadly defined, refers to the research programme that investigates the relationship between psychology and economic behaviour. The purpose of this article is to provide an outline of behavioural economics research and to describe where research in behavioural game theory stands within this outline. The aim is not to assess the impact of particular contributions or describe and interpret specific applications. Rather, the goal is to provide an organization of the literature based on the type of departures from standard theory.KeywordsAmbiguityAmbiguity aversionAsymmetric informationAuctionsBehavioural economicsBehavioural economics and game theoryCommitmentEvolutionary gamesExpected utility hypothesisFixed point theoremsFraming effectsGame theoryIndependence axiomInterdependent preferencesMechanism designNeuroeconomicsPreference reversalsProbability distributionsProspect theoryPsychological gamesSocial preferencesUltimatum gameUncertaintyJEL ClassificationsC7

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