This paper examines elements of the complex place/role/influence of psychology in the history of consumer choice theory. The paper reviews, and then challenges, the standard narrative that psychology was ‘in’ consumer choice theory early in the neoclassical revolution, then strictly ‘out’ during the ordinal and revealed preference revolutions, now (possibly) back in with recent developments in experimental, behavioural and neuroeconomics. The paper uses the work of three particular economic theorists to challenge this standard narrative and then provides an alternative interpretation of the history of the relationship between psychology and consumer choice theory.
2. Zizzo (2010). Experimental Demand Effects in Economics
3. Harrison and Ross (2010). "The Methodologies of Neuroeconomics"- really interesting critique of aspects of neuroeconomic methodologies
4. Workplace Wellness Programmes Can Generate Savings - Health Affairs (2010)
1 Katherine Baicker (Kbaicker@hsph.harvard.edu) is a professor of health economics at the School of Public Health, Harvard University, in Boston, Massachusetts.
2 David Cutler is a professor of economics at Harvard University.
3 Zirui Song is a doctoral candidate at Harvard Medical School.
Amid soaring health spending, there is growing interest in workplace disease prevention and wellness programs to improve health and lower costs. In a critical meta-analysis of the literature on costs and savings associated with such programs, we found that medical costs fall by about $3.27 for every dollar spent on wellness programs and that absenteeism costs fall by about $2.73 for every dollar spent. Although further exploration of the mechanisms at work and broader applicability of the findings is needed, this return on investment suggests that the wider adoption of such programs could prove beneficial for budgets and productivity as well as health outcomes.
Key Words: Cost of Health Care • Health Promotion/Disease Prevention
5. Simolean Sense blog does a very nice weekly roundup of behavioural topic. In general, this blog is doing a very good job at harvesting relevant behavioural links from round the web.
6. Dan Gilbert NYT article on the psychology of numbers