Anomalies.- Information, Learning and Markets.- Markets and Reference Dependent Preferences.- Welfare.- Public Policy and Bounded Rationality.- Standard Fiscal Policy and Merit Wants.- Agency and Dependency.- Tax Policy.- Framing Matters: Non-Standard Fiscal Policy.- Stated Preference and Non-Market Decisions.
This book is about bounded rationality and public policy. It is written from the p- spective of someone trained in public economics who has encountered the enormous literature on experiments in decision-making and wonders what implications it has for the normative aspects of public policy. Though there are a few new results or models, to a large degree the book is synthetic in tone, bringing together disparate literatures and seeking some accommodation between them. It has had a long genesis. It began with a draft of a few chapters in 2000, but has expanded in scope and size as the literature on behavioural economics has grown. At some point I realised that the geometric growth of behavioural - search and the arithmetic growth of my writing were inconsistent with an am- tion to be exhaustive. As such therefore I have concentrated on particular areas of behavioural economics and bounded rationality. The resulting book is laid out as follows: Chapter 1 provides an overview of the rest of the book, goes through some basic de?nitions and identi?es themes.
Pioneers the theoretical analysis of public policy in a context of bounded rationality
Brings together public economics and behavioural economics
Surveys the behavioural anomalies most relevant in a public policy context
Provides a new perspective on stated preference and environmental valuation