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Emotion Research in Economics

Author

Listed:
  • Klaus Wälde
Abstract
Emotions were central to the development of economics, especially in utility theory in classical economics. While neoclassical utility theory basically abolished emotions, behavioural economics more recently reintroduced emotions in utility theory. Beyond utility theory, economic theorists use emotions to explain behaviour which otherwise could not be understood or they study emotions out of interest for the emotion itself. While some analyses display a strong overlap between psychological thinking and economic modelling, in most cases there is still a large gap between economic and psychological approaches to emotion research. Ways how to reduce this gap are discussed.

Suggested Citation

  • Klaus Wälde, 2016. "Emotion Research in Economics," CESifo Working Paper Series 5982, CESifo.
    • Handle: RePEc:ces:ceswps:_5982
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp5982.pdf
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    References listed on IDEAS

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    Cited by:

    1. Klaus Wälde & Agnes Moors, 2016. "Current Emotion Research in Economics," Working Papers 1612, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    2. Klaus Wälde, 2016. "Emotion Research in Economics," Working Papers 1611, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.

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    More about this item

    Keywords

    utility theory; ex-ante emotions; immediate emotions; ex-post emotions; belief-based emotions; regret; desire; stress; anxiety; guilt;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • B00 - Schools of Economic Thought and Methodology - - General - - - History of Economic Thought, Methodology, and Heterodox Approaches
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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