Smart Economic Decision-Making in a Complex World is a fresh and reality-based perspective on decision-making with significant implications for analysis, self-understanding, and policy. Although people can make mistakes and are not always quick to learn, in this book it is recognized that most decision makers are smart and rational but don't behave in accordance with the norms of conventional economics. Perhaps surprisingly, this tends to generate outcomes that are superior to what would occur had people behaved in accordance to norms of conventional economics. 'Smart' decision-makers don't have to be efficient or make decisions that are in the best interest of society or even in their own best interest. Much depends on the decision-making environment, the preferences of decision makers, and the power relationship amongst decision makers. Altman also examines the conditions under which smart people generate outcomes that improve their place of work, their household, and their society. Within this work, the curious reader will find interesting open questions - and progress towards their resolution - in many fascinating areas of current economic debate, including: The role of realistic assumptions robust model buildingUnderstanding how and when non-neoclassical behaviour is best practiceWhy the assumption of smart decision-makers is best to best understand and explain our economies and societiesWhen and how efficiency is achievedWhy inefficiencies can persistWhen and how consumer welfare is maximizedWhat benchmarks should be used to determine efficiency and rationality Makes the case for 'smart and rational' decision-making as a context-dependent rational process, framed by socio-cultural environment, and conditioned by institutional capacitiesExplains how incorporation of the 'smart' decision-maker concept into economic thought improves our understanding of how, why, and when, people generate the outcomes they doExplores how economic efficiency can be achieved, individual preferences realized, and social welfare maximized through the use of 'smart and rational' approaches INDICE: 1. Introduction: Rationality Within the Bounds of Reason 2. Benchmarks for Better Decisions 3. Mental Models and Decision-Making 4. Heuristics Versus Deep Calculation 5. Rational Inefficiency: Smart Decisions and Bad Social Outcomes 6. Financial Illiteracy With Smart People 7. Smart Thinking and Errors and Biases 8. Consumption Gone Awry 9. Rational Firms and Suboptimal Performance 10. Smart Thinking, Market Failure, and Macroeconomics 11. Nudging Versus Institutional Design, Capabilities and Freedom 12. Conclusion
- ISBN: 978-0-12-811461-2
- Editorial: Academic Press
- Encuadernacion: Rústica
- Páginas: 320
- Fecha Publicación: 01/08/2018
- Nº Volúmenes: 1
- Idioma: Inglés