Microeconomics and Human Behavior

Microeconomics and Human Behavior: Toward a New Synthesis of Economics and Psychology challenges the traditional foundations of microeconomic theory by introducing an alternative approach grounded in experimental psychology. The book critiques the conventional reliance on the abstract concepts of rationality and utility in modeling consumer behavior, proposing instead a framework that draws upon operant conditioning paradigms. This innovative synthesis emphasizes lawful behavior patterns observed in controlled experiments, demonstrating their relevance to economic decisions. By focusing on observable variables and behavioral responses rather than speculative preferences or utility functions, the study aims to offer a more empirically robust and predictive model of microeconomic behavior. Through its operant-based lens, the book delves into the mechanisms driving consumer and investor decisions, extending the discussion to broader economic phenomena like wealth allocation and market dynamics. While acknowledging the complexities of human behavior and the limitations of experimental data derived from animal studies, the author argues for the applicability of these findings to human economic behavior. The work highlights the potential for this behavioral approach to refine economic analysis and policy-making by providing a more grounded understanding of the psychological underpinnings of economic actions. For readers and researchers interested in the intersection of economics and psychology, this study provides a compelling case for rethinking traditional assumptions and embracing interdisciplinary methodologies. This title is part of UC Presss Voices Revived program, which commemorates University of California Press's mission to seek out and cultivate the brightest minds and give them voice, reach, and impact. Drawing on a backlist dating to 1893, Voices Revived makes high-quality, peer-reviewed scholarship accessible once again using print-on-demand technology. This title was originally published in 1982.