Anchoring in economics: on Frey and Gallus on the aggregation of behavioural anomalies

Earl, Peter E (2015) Anchoring in economics: on Frey and Gallus on the aggregation of behavioural anomalies. Economics, 9 2015-21: 1-25. doi:10.5018/economics-ejournal.ja.2015-21


Author Earl, Peter E
Title Anchoring in economics: on Frey and Gallus on the aggregation of behavioural anomalies
Journal name Economics   Check publisher's open access policy
ISSN 1864-6042
Publication date 2015-07-15
Year available 2015
Sub-type Article (original research)
DOI 10.5018/economics-ejournal.ja.2015-21
Open Access Status DOI
Volume 9
Issue 2015-21
Start page 1
End page 25
Total pages 25
Place of publication Kiel, Germany
Publisher University of Kiel, Institute for the World Economy
Collection year 2016
Language eng
Abstract This paper examines the research area identified by Frey and Gallus (Aggregate Effects of Behavioral Anomalies: A New Research Area, 2014) and the relationship between it and the choices that economists make. It supports the Frey and Gallus view that, as a consequence of individuals employing external inputs rather than relying upon their own judgemental capacities, the quality of decision-making may differ at the market and macro levels from what has been observed in laboratory experiments. It seeks to forestall potential moves by rational choice theorists to argue that such processes, imposed by competitive pressures, will swiftly eliminate anomalous behaviour. But it questions Frey and Gallus’s use of conventional rational choice theory as the reference point for judging the quality of real-world decisions. It argues that choice is an activity based on evolving sets of habits and rules, rather than based on given preference systems, and that Frey and Gallus’s failure to consider alternative reference points is itself a manifestation of anchoring.
Keyword Heuristics and biases
Infinite regress
Rationality
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2016 Collection
School of Economics Publications
 
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