"...Ridiculous" Ep. 3: Children of Unlikely Parents
Feb 26, 2024
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From the clash of economists and psychologists to the birth of behavioral economics challenging traditional thinking, this podcast delves into the heated debates among prominent figures and the evolution of a new movement shaping the future. Explore the strategic naming of the field, controversies, and the interdisciplinary nature of behavioral economics.
31:51
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Quick takeaways
Behavioral economics integrates psychology and economics, overcoming initial skepticism and fostering a data-driven understanding of economic decision-making.
The clash between economists' theory-focused approach and psychologists' empirical focus highlights the challenge of integrating different disciplines in behavioral economics.
Deep dives
The Tension Between Economists and Psychologists in Behavioral Economics
Behavioral economics, a field melding economics and psychology, faces a fundamental tension due to the differing approaches of economists, who tend to be theory-focused and defensive against contradicting facts, and psychologists, known for their open-mindedness and empirical focus. The movement aims to integrate insights from both disciplines but struggles with the inherent hostility between economists and psychologists.
Identity Crisis in Behavioral Economics
Behavioral economics underwent an identity crisis as it challenged traditional economic assumptions about rational decision-making. Pioneers like Richard Thaler and Daniel Kahneman introduced groundbreaking concepts that contradicted standard economic theories. The movement struggled to find its place within the realms of economics and psychology, leading to debates on whether the label 'behavioral economics' adequately represents its interdisciplinary nature.
The Evolution and Future of Behavioral Economics
Behavioral economics emerged out of a clash between economics and psychology, with scholars rejecting conventional economic models in favor of exploring human irrationality. The movement's success questioned the traditional separation of economics and psychology, paving the way for a more integrated approach to behavioral science. The field reflects a broader trend towards interdisciplinary collaboration in social sciences, challenging the existing divisions and suggesting a more cohesive future.
Behavioral Economics was using psychology to understand economics, but what did economists and psychologists think about their unexpected marriage? Slowly, this fledgling field weathered a flurry of criticism from both sides as it doggedly held onto data-driven ideas about economic decision-making.
This is the third episode of a special series called: "They Thought We Were Ridiculous: The Unlikely Story of Behavioral Economics."
For more information, check out the Opinion Science webpage for this series: http://opinionsciencepodcast.com/episode/they-thought-we-were-ridiculous/