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SSRN Electronic Journal
Article . 1998 . Peer-reviewed
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Conference object . 1998
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On the Psychological Basis of Economics and Social Psychology

Authors: Thomas E. Chamberlain;

On the Psychological Basis of Economics and Social Psychology

Abstract

The emotive (Gossen) equation in conjunction with its expectational constraints, comprising a formulation or model of the individual's expectational plan, is applied to elementary cases in economics and social psychology thereby uniting psychology, social psychology, and economics within one methodology. This canonical formulation represents the individual's future (intertemporal) uncertainties and possible choices, and resulting experiences, accounting for emotive- and risk-discounting of expected instant utility. In an additional deepening of neoclassical economics, expected intertemporal utility is mapped onto a real-time datum as anticipatory feeling-state. Following surprise (e.g., by a creative thought, or any unexpected occurrence), of the several candidate expectational plans that the individual may consider, the plan which provides the maximum anticipatory feeling-state is chosen. This (operative) plan guides behavior until again negated by surprise. The instant utility approach is applied to an elementary example of capital function, and to two cases of economically interacting individuals, the second of which models an imposed stereotypic bias on the expected productivity of one of the agents. The effect of this bias on the welfare of the cooperating agents, and on the capital versus finished good exchange price, is addressed. Inasmuch as the Gossen equation acquires empirical substantiation from neuropsychological investigations, it may be concluded that a unifying connection between the human and natural sciences has been realized.

Keywords

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citations
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
5
Average
Average
Average
bronze