This paper surveys work on dynamic heterogeneous agent models (HAMs) in economics and finance. Emphasis is given to simple models that, at least to some extent, are tractable by analytic methods in combination with computational tools. Most of these models are behavioral models with boundedly...

In October 1956, the RAND Corporation established the Logistics Systems Laboratory (LSL) with the goal of using simulation to translate the broad findings of normative microeconomics into detailed, implementable procedures for US Air Force operations. The laboratory was housed in the training...

Behavioral economics emerged in the second half of the 20th century and has become an important social science research area. Some have argued that the emergence of behavioral economics (BE) amounts to a scientific revolution. That is, they argue that BE is becoming or has become the new,...

This article traces a normative turn between the middle of the 1940s and the early 1950s reflected in the reformulation, interpretation, and use of rational choice theories at the Cowles Commission for Research in Economics. This turn is paralleled by a transition from Jacob Marschak's to...

Armed with a set of economic theories and a desire to influence policy and improve lives, behavioral economists have developed a doctrine variously referred to as libertarian, light/soft, or asymmetric paternalism, and a series of policy proposals collectively referred to as the nudge agenda. To...

Economic behavior in the study of Islamic economics is the basis for the government to portray political ethics and ethical economic functions of individuals in functioning as a member of society. Secular ethics and religious ethics, according to al-Mawardi, as the code of conduct in conducting...

In his book from the early 1800s, Essai Philosophique sur les Probabilités, the mathematician Pierre-Simon de Laplace anticipated many ideas developed in the 1970s in cognitive psychology and behavioral economics, explaining human tendencies to deviate from norms of rationality in the presence...

If we reassess the rationality question under the assumption that the uncertainty of the natural world is largely unquantifiable, where do we end up? In this article the author argues that we arrive at a statistical, normative, and cognitive theory of ecological rationality. The main casualty of...

Behavioral economics aspires to replace the agents of neoclassical economics with living, breathing human beings. Here, the author argues that behavioral economics, like its neoclassical counterpart, often neglects the role of active sense-making that motivates and guides much human behavior....

Behavioral economics characterizes decision-makers using psychologically-informed models. Cognitive science produces psychologically-informed models. Why don't these disciplines talk more? Here, the author presents several arguments for why cognitive science should inform behavioral economics -...