A substantial increase in the availability of data on psychosocial traits in largerepresentative longitudinal samples has opened up new areas of research for economistsand new opportunities for collaborations with psychologists. As an example, I incorporatepersonality into alternative economic models of marriage, with individual traits associatedwith either productivity in home ...

This essay provides a perspective on the trend towards integrating psychology into economics. Some topics are discussed, and arguments are provided for why movement towards greater psychological realism in economics will improve mainstream economics. Working Paper No. E02-313 A Perspective on Psychology and Economics Matthew Rabin Department of Economics, University of California, Berkeley

M developments of recent years indicate the emergence of a general science of human behavior. Of major significance in this movement toward integration in the social sciences was a volume representing the collaboration of nine specialists from the fields of psychology, sociology, and cultural anthropology.̂ The more limited objective here is to call attention to some trends in contemporary psych...

The theory of rational efficient markets dominated financial economics three decades ago. In recent years, however, psychology-inspired behavioral finance has overshadowed it. Both critics and proponents of the use of psychology in economics and finance base their positions on the premise that psychology primarily deals with human fallibility, systematic mistakes and biased judgment (Kahneman, ...