Smart Economic Decision-Making in a Complex World

Front matter\nCopyright\nDedication\nEndorsements\nAcknowledgements\nIntroduction: Smart thinking in the real world of complexity\n	What this book is all about\n	Appendix: Background sources for, smart economic decision-making in a complex world\n	References\nThe evolution of decision-making: Why institutions and capabilities matters\n	Introduction\n	Assumptions matter and behavioural economics\n	The conventional wisdom and the different faces of behavioural economics\n	The bounded rationality approach in context\n	Satisficing and procedural rationality in context\n	X-efficiency theory and external benchmarks for optimal behaviour\n	Nudging versus constraints change and redesign\n	Conclusion\n	References\nHow complexity affects decision-making\n	Introduction\n	Key points of overlap: Hayek and behavioural economics\n	Assumptions matter\n	Revisiting complexity and the expert\n	Contemporary views on bottom-up decision making and individualized norms for rationality\n	Ecological rationality and the spontaneous order\n	Opening the door to intelligent design\n	Opening the door to multiple equilibria: Casting shadows on the spontaneous order and ecological rationality\n	Conclusion: Hayek’s Golden nugget in decision-making theory\n	References\nFreedom of choice in a complex world\n	Introduction\n	Multiple equilibria in consumption\n	Multiple equilibria in production: An introduction\n	Multiple equilibria in production: X-inefficiency and managerial slack\n	Multiple equilibria in production: X-inefficiency and agency\n	Multiple equilibria in production: Some related scenarios\n	Historical and logical time\n	Rent seeking and x-efficiency\n	Conclusion\n	References\nUnderstanding rational inefficiency: A scientific basis for economic failure and success\n	Introduction\n	Introducing rationality and rational inefficiency\n	Institutions, efficiency, and rationality\n	Different types of rationality\n	Production inefficiency\n	Consumption inefficiencies\n	Macroeconomic choices and rational behaviour\n	Conclusion\n	References\nHow consumers can achieve freedom of choice: When consumers are truly sovereign\n	Introduction\n	An alternative model of preference formation\n	Conventional perspectives and critiques\n	Constructing an alternative theory of welfare maximization\n	Choice x-inefficiency and x-inefficiency in production\n	Conclusion\n	References\nInside the black box of the firm: Why choice, power and preferences matter for productivity and efficiency\n	Introduction\n	Origins of efficiency wage theory\n	Real wages, effort variability, and efficiency wages\n	Efficiency wage theory revised\n	Foundations of x-efficiency theory\n	Linking x-efficiency and efficiency theories\n	Conclusion\n	References\nHow smart people can be involuntarily employment when misguided policy dominates decision-making\n	Introduction\n	Keynes and the real wage rate\n	Keynes and the demand side\n	The behavioural model and employment\n	Conclusion\n	References\nWhy financial literacy matters for socio-economic wellbeing\n	Introduction\n	The conventional wisdom\n	Fast and frugal decision-making and smart heuristics\n	Institutions matter\n	Errors and biases and ‘irrational’ heuristics\n	Financial education and literacy and the different faces of behavioural economics\n	Linkages between financial issues, financial education, and financial literacy\n	Pensions and saving\n	Investing in financial assets\n	Bubbles and busts: Animal spirits and decision-making\n	Informational problems and errors in decision making\n	The trust heuristic\n	Ponzi schemes and the trust heuristic\n	Conclusion: Economic theory, financial literacy and public policy\n	References\nHow labour markets really work\n	Introduction\n	What is behavioural labour economics\n	Modelling labour supply: A standard rendering\n	A behavioural model of labour supply: A target approach\n	Non-labour market income and labour supply\n	Unemployment insurance and labour supply\n	Non-economic variables and errors or biases in labour market decision-making\n	Demand for labour and the supply of effort\n	Efficiency wage and x-efficiency theory\n	Some labour market implications of generalized x-efficiency theory\n	Population growth with real women\n	Conclusion\n	References\nIndex\n	A\n	B\n	C\n	D\n	E\n	F\n	G\n	H\n	I\n	K\n	L\n	M\n	N\n	O\n	P\n	Q\n	R\n	S\n	T\n	U\n	W\n	X