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Behavioral Public Economics: Social Incentives and Social Preferences

Behavioral Public Economics: Social Incentives and Social Preferences

Paperback

EconomicsInvesting & FinanceAnthropology

ISBN10: 0367362414
ISBN13: 9780367362416
Publisher: Routledge
Published: Sep 27 2021
Pages: 206
Weight: 0.69
Height: 0.46 Width: 6.14 Depth: 9.21
Language: English

Behavioral Public Economics shows how standard public economics can be improved using insights from behavioral economics. Public economics typically lists four market failures that may justify government intervention in markets--imperfect competition (or natural monopoly), externalities, public goods, and asymmetric information. Under the rational choice paradigm ('agents choose what is best for them'), public economics has examined the welfare effects of policy. Recent research in behavioral economics highlights a fifth market failure--individuals may make mistakes in pursuing their own well-being. This book calls for a rethinking of assumptions of individual behavior and provides a good foundation for public economic theory.

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