Abstract
In economics, the term ‘anomaly’ usually refers to behaviour which does not conform to the predictions of rational choice models . The argument of the introductory chapter was that anomalies are sufficiently common within economic behaviour and that there is sufficient predictability in decision-making biases to provide useful guidance for policy makers. The purpose of this chapter is to provide instances. Now, the gap between the predictions of economic theory and actual behaviour has been extensively documented elsewhere. Camerer (1998), McFadden (1999) and Starmer (2000) provide recent summaries and there are whole books devoted to the subject, such as the volume edited by Kahneman and Tversky (2000). Consequently, I shall be selective in the anomalies I discuss, concentrating on the most familiar and on some of the objections which might be raised against their existence. In line with the objectives of the book, the focus will be on features which have significance for public policy.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2009 Springer Netherlands
About this chapter
Cite this chapter
Munro, A. (2009). Anomalies. In: Bounded Rationality and Public Policy. The Economics of Non-Market Goods and Resources, vol 12. Springer, Dordrecht. https://doi.org/10.1023/b99496_2
Download citation
DOI: https://doi.org/10.1023/b99496_2
Published:
Publisher Name: Springer, Dordrecht
Print ISBN: 978-1-4020-9472-9
Online ISBN: 978-1-4020-9473-6
eBook Packages: Business and EconomicsEconomics and Finance (R0)