Psychology and Economics: Perspectives on Risk, Cooperation, and the Marketplace
Author(s)
Lopes, Lola L.
Abstract
Research on risk and uncertainty in decision making, social dilemmas and experimental markets reflects interaction between psychology and economics. Their mutual influence has been greatest in the study of decision making under risk and uncertainty, where current issues include preference reversals, repeated gambles, regret and ambiguity. In the study of social dilemmas, cooperation and public goods using game theory, interactions between psychology and economics have been relatively minor. Psychologists have not been much involved in research on experimental markets, but psychological theory could enhance the understanding of market behavior.
