Over the last 10-15 years, however, a new school of economic analysis has emerged that challenges the rational choice model precisely on its predictive power. Empirical and laboratory work by cognitive psychologists and experimental economists has identified a growing number of anomalies in which behavior appears to systematically depart from that predicted by rational choice. The extent to which behavioral economics calls into question more traditional modes of economic analysis remains sharply contested. At the very least, however, it seems clear that attention must be paid to the possibility that behavioral analysis sheds light on policy issues.
Richard Thaler is one of the foremost behavioral economists. This volume collects many of his early studies of behavior that departs from the predictions of rational choice economics. As such, this volume is more of an anthology than a coherent whole--and reads like it. The lay reader should also be warned that "Quasi Rational Economics" is, at beast, only quasi-accessible. Unlike "Winner's Curse," which collects a (relatively) accessible a series of articles Thaler wrote for the Journal of Economic Perspectives, "QRE" collects his more technical literature. Yet, for those willing to tackle the math and technical analysis, it remains a useful introduction to the literature.
