TY - JOUR
T1 - Beauty contested
T2 - How much of keynes' remains in behavioural economics' beauty contests?
AU - Lanteri, Alessandro
AU - Carabelli, Anna
PY - 2011/5
Y1 - 2011/5
N2 - In one of the most famous passages of the economic literature, John Maynard Keynes likens the stock market to a beauty contest (BC), in which the winners are those who anticipate the average opinion. In behavioural economics there have recently been attempts at investigating the BC experimentally. We argue that there exist important differences between Keynes' and behavioural economics' BCs. We identify several types of BCs and propose a taxonomy. We also suggest that, in spite of these differences, Keynes' theory of decision under uncertainty is central to understanding the actual behaviour observed in experimental BCs.
AB - In one of the most famous passages of the economic literature, John Maynard Keynes likens the stock market to a beauty contest (BC), in which the winners are those who anticipate the average opinion. In behavioural economics there have recently been attempts at investigating the BC experimentally. We argue that there exist important differences between Keynes' and behavioural economics' BCs. We identify several types of BCs and propose a taxonomy. We also suggest that, in spite of these differences, Keynes' theory of decision under uncertainty is central to understanding the actual behaviour observed in experimental BCs.
KW - Beauty contest
KW - Behavioural economics
KW - Keynes
KW - Rationality
UR - https://www.scopus.com/pages/publications/79959338230
U2 - 10.1080/09672560903552512
DO - 10.1080/09672560903552512
M3 - Article
SN - 0967-2567
VL - 18
SP - 269
EP - 285
JO - European Journal of the History of Economic Thought
JF - European Journal of the History of Economic Thought
IS - 2
ER -