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Does Economics Need A Psychologist?- Behavioral Models Challenging Expected Utility In A Context Of Gambles

Svensson, Henrik (2006)
Department of Economics
Abstract
This thesis investigates the very concept of behavioral economics in relation to expected utility. A comparison between the standard way to measure utility and alternative manners is executed. More precisely, prospect theory, disappointment theory and regret theory give new and additional psychological perspectives into economics. These aspects embrace behavioral components that influence the final utility. I find this approach useful to reflect human economic behavior where classical economic models fail. To explain, reference dependence, disappointment protection and gambling addiction are analytically addressed. Moreover, I develop the gambling trap to understand persistent and aggressive gambling despite repetitive losses.
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author
Svensson, Henrik
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
expected utility, prospect, regret, disappointment, gambling., Economics, econometrics, economic theory, economic systems, economic policy, Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik
language
English
id
1336123
date added to LUP
2006-06-14
date last changed
2010-08-03 10:49:18
@misc{1336123,
  abstract     = {This thesis investigates the very concept of behavioral economics in relation to expected utility. A comparison between the standard way to measure utility and alternative manners is executed. More precisely, prospect theory, disappointment theory and regret theory give new and additional psychological perspectives into economics. These aspects embrace behavioral components that influence the final utility. I find this approach useful to reflect human economic behavior where classical economic models fail. To explain, reference dependence, disappointment protection and gambling addiction are analytically addressed. Moreover, I develop the gambling trap to understand persistent and aggressive gambling despite repetitive losses.},
  author       = {Svensson, Henrik},
  keyword      = {expected utility,prospect,regret,disappointment,gambling.,Economics, econometrics, economic theory, economic systems, economic policy,Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik},
  language     = {eng},
  note         = {Student Paper},
  title        = {Does Economics Need A Psychologist?- Behavioral Models Challenging Expected Utility In A Context Of Gambles},
  year         = {2006},
}