Behavioural Economics and Experiments

Ananish Chaudhuri is Professor of Experimental Economics at the University of Auckland. He has taught at Harvard Kennedy School, Wellesley College, Rutgers University and Washington State University.

• Preface 1. How we decide 2. Experiments in behavioural economics 3. Gut feelings and effortful thinking 4. Expected utility theory and prospect theory 5. Probabilistic thinking 6. Thinking strategically 7. The ultimatum game 8. Market implications of the ultimatum game 9. Trust and trustworthiness in everyday life 10. Trust and trustworthiness in markets 11. Cooperation in social dilemmas 12. The carrot or the stick: Sustaining cooperation in social dilemmas 13. I will if you will: Resolving coordination failures in organizations 14. Behavioural analyses of markets 15. Asset bubbles in markets References

"Filled with real world examples ranging from sports to politics and backed by experimental evidence, this book takes the reader on a wonderful journey examining human behavior, individual and collective decision making, trust, fairness, cooperation and competition. Chaudhuri is a gifted writer, and the book will be treasured by experts in the field as well as those who would like to learn more about behavioural economics."Iris Bohnet, Albert Pratt Professor of Business and Government, Academic Dean, Harvard Kennedy School, Author of "What Works: Gender Equality by Design""I strongly recommend this clear, lively and engaging book to all readers, including those without any training in economics, who want to understand how real people decide how much to trust others in everyday life."Paul Seabright, Director, Institute of Advanced Study in Toulouse, Author of "The Company of Strangers" and "The War of the Sexes""This is an extremely absorbing book covering key topics in behavioural and experimental economics, but with applications and anecdotes that go far beyond economics. The book provides an excellent overview of the field and its most recent developments. It is an indispensable source of inspiration for the researcher and a treasure trove of examples for the teacher."Martin Kocher, Federal Minister for Labour, Family and Youth, Government of Austria"Chaudhuri has written an extremely readable introduction to experimental economics. This is perfect for advanced undergrads or graduate students who want to learn about state-of-the-art research without being smothered by technical details."David J. Cooper, Brim Eminent Scholar in Economics and Director of XS/FS, Florida State University, Former Co-Editor, Experimental Economics"This book is a perfect introduction to behavioral and experimental economics and fills a much needed niche for the classroom. Ananish Chaudhuri is a gifted author whose conversational writing style is easily accessible for undergraduates, yet detailed enough to use as an introduction for graduate students. He motivates each topic with engaging real-world examples before discussing related research. It’s a fun book to read and students will certainly enjoy it. Highly recommended."James Murphy, Rasmuson Chair in Economics, University of Alaska, Anchorage, Affiliate Faculty, Economic Science Institute, Chapman University