Show Summary Details

Page of

PRINTED FROM OXFORD HANDBOOKS ONLINE ( © Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a title in Oxford Handbooks Online for personal use (for details see Privacy Policy and Legal Notice).

date: 18 January 2020

Abstract and Keywords

The behavioural revolution has profoundly affected how we conceptualize behaviour. The rational agent of standard microeconomic theory has been found wanting and, in its place, new formulations have been presented which take seriously human traits like myopia and loss aversion. Here it is argued that the behavioural revolution offers a way of understanding common problems in economic geography, such as co-location, clusters of innovation, the diffusion of innovation, and home bias. It is noted that earlier versions of behaviouralism stressed bounded rationality but underestimated the far-reaching consequences of the behavioural revolution. To explain the significance of these developments for understanding the intersection between cognition and context, we look closely at behaviour in time and space. The implications of behaviouralism for institutions are briefly considered, emphasizing the role that collective action in or through institutions can play in ameliorating the adverse effects of behavioural biases and anomalies.

Keywords: behaviour, cognition, context, institutions, rationality

Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.