Behavioral Economics for Cost-Benefit Analysis by David L. We... - 9781107197350

Behavioral Economics for Cost-Benefit AnalysisBenefit Validity When Sovereign Consumers Seem to Make Mistakes\nAuthor(s): David L. Weimer\nFormat: Hardback\nPublisher: Cambridge University Press, United Kingdom\nImprint: Cambridge University Press\nISBN-13: 9781107197350, 978-1107197350\nSynopsis\nHow should policy analysts assess 'benefit validity' when behavioral anomalies appear relevant? David L. Weimer provides thoughtful answers through practical guidelines. Behavioral economists have identified a number of situations in which people appear not to behave according to the neoclassical assumptions underpinning welfare economics and its application to the assessment of the efficiency of proposed public policies through cost-benefit analysis. This book introduces the concept of benefit validity as a criterion for estimating benefits from observed or stated preference studies, and provides practical guidelines to help analysts accommodate behavioral findings. It considers benefit va.