Abstract
In the 1950s and 1960s, mathematical psychology and behavioral decision research arose in the unique context of the University of Michigan. These two psychological programs gave rise to Daniel Kahneman and Amos Tversky's famous research of the 1970s. In the early 1980s, Kahneman and Tversky's research was incorporated into financial economics, resulting in the new field of behavioral finance. In the 1990s, behavioral finance broadened its scope and became behavioral economics, a dominant new research program in economics. Despite its explorations in various directions and its claim of Herbert Simon's heritage in the 2000s, behavioral economics remains firmly attached to the framework as set out by Kahneman and Tversky.
Highlights
This double understanding of psychology as using a measurement instrument to investigate that same measurement instrument became problematic when it turned out that the measurement instrument did not behave as it should
Give psychology the new task of investigating how and when human decision makers deviate from how EJPE.ORG – PHD THESIS SUMMARY
The paper was published in Econometrica and argued that cognitive psychology and economics were unified in one field of behavioral science
Summary
This double understanding of psychology as using a measurement instrument to investigate that same measurement instrument became problematic when it turned out that the measurement instrument did not behave as it should. PHD THESIS SUMMARY: Kahneman and Tversky and the making of behavioral economics. I start by discussing the work of the mathematical psychologists and behavioral decision researchers at the University of Michigan in the 1950s and 1960s.
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