Association Journals

Learning about oneself and incentive design: from the perspective of behavioral economics

ISHIDA Junichiro(Osaka University)

While the traditional branch of economics often assumes that people make decisions strictly to maximize their material well-being, there are increasingly many works which deviate from this paradigm and incorporate behavioral factors explicitly into economic analysis. A similar trend can also be observed in the field of organizational economics, where more attention is paid to behavioral aspects of incentive design in organizations. What issues are economists interested in, and how do they attempt to approach those issues? In this article, we overview recent developents in this emerging field, with particular focus on consequences which arise from the process of self-identification. We also discuss potential future research topics and the possibility of interdisciplinary collaboration.

Keyword : human rationality, organizational economics, contract theory, looking-glass self, self-esteem concerns