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This paper aims to survey literature on behavioral economics and finance, with particular emphasis on a selection of models, methods and tools that this strand of thought uses to approach and explain observable phenomena.

After a brief discussion on the meaning and context of behavioral economics, the manuscript identifies five topics of special interest: time preference, heuristics, emotions, finance and macro behavior. For each of these topics, relevant models, methods and tools are identified and scrutinized.

Behavioral economics and finance establish an effective bridge between orthodox economic thinking and new and revolutionary methods of analysis. Exploring the intricacies of human behavior can frequently be done by adapting the trivial and conventional intertemporal utility maximization models that economists insistently resort to, but to fully grasp such intricacies, a step forward is required. Agent-based models and other tools from complexity sciences constitute the analytical arsenal that is needed to improve our understanding of how behavioral issues attach to heterogeneity, local interaction, path-dependence, out-of-equilibrium dynamics and emergence.

Although surveys on behavioral economics and finance abound in the specialized literature, this study has the peculiarity of emphasizing five relevant topics that are particularly illustrative of the pivotal role of behavioral science in promoting the transition from the strict neoclassical perspective to a less mechanic and more organic view of economics and finance.

This paper aims to give a brief review on behavioral economics and behavioral finance and discusses some of the previous research on agents' utility functions, applicable risk measures, diversification strategies and portfolio optimization.

The authors also cover related disciplines such as trading rules, contagion and various econometric aspects.

While scholars could first develop theoretical models in behavioral economics and behavioral finance, they subsequently may develop corresponding statistical and econometric models, this finally includes simulation studies to examine whether the estimators or statistics have good power and size. This all helps us to better understand financial and economic decision-making from a descriptive standpoint.

The research paper is original.

This study aims to critically review recent contributions to the methodology of financial economics and discuss how they relate to one another and directions for further research.

A critical review of recent literature on new methodologies for financial economics.

Recent books have made important contributions to the study of financial economics. They suggest new approaches that include an emphasis on radical uncertainty, adaptive markets, agent-based modeling and narrative economics, as well as extensions of behavioral finance to include concepts such as diagnostic expectations. Many of these contributions can be seen more as complements than substitutes and provide fruitful directions for further research. Efficient markets can be seen as holding under particular circumstances. A major them of most of these contributions is that the study of financial crises and other aspects of financial economics requires the use of multiple theories and approaches. No one approach will be sufficient.

There are great opportunities for further research in financial economics making use of these new approaches.

These recent contributions can be quite useful for improved analysis by researchers, private participants in the financial sector and macroeconomic and regulatory officials.

Provides an introduction to these new approaches and highlights fruitful areas for their extensions and applications.

This paper uses the theory of planned behavior (TPB) to explain entrepreneurial intentions (EIs) among students from different South-East (SE) European countries, considering various personal and situational variables. The authors examine how the regional cultural context affects individual perceptions and beliefs about entrepreneurship, which in turn form the basis of the cognitive antecedents of the TPB model.

Using a sample of 850 respondents, the authors estimate a two-level model, addressing the issue of endogeneity in the relationship between attitudes and beliefs and the respondents' EI. Specifically, the authors focus on heterogeneity across nations in attitudes toward entrepreneurial behavior (ATEB), subjective norms (SN) and perceived behavioral control (PBC).

The results show that the perceived behavioral control and the attitude toward entrepreneurial behavior are the main determinants of Balkan students' EI. The authors find that the role of SE European culture in entrepreneurship intentions does not follow the Western pattern. In this particular regional environment dominated by collectivist culture, students' EIs are influenced more by cooperation, caring for others and other non-monetary benefits.

Like any study, this study has limitations. First, all the variables were measured using a single questionnaire. Although common method bias was shown not to be an issue, in future research different variables should be measured with different methods. For instance, using the items by Liñán and Chen (2009) which were developed in the United States of America, to measure SE European students' entrepreneurial perceived behavioral control might ignore some requisite resources or abilities typical for SE European students, such as personal relational network (similar to the notion of guanxi in China (see, e.g. Hwang et al., 2009). Second, Busenitz et al. (2000) indicate that cross-national differences in entrepreneurship are best explained by a broader set of institutions, i.e. educational and governmental support agencies. In general, the empirical evidence on the relationship between national culture and entrepreneurial behavior is mixed and this is generally agreed that an important issue that needs to be considered is the interactions between cultural values, social institutions, industry characteristics and outcomes such as entrepreneurship (Hayton et al., 2002). In the future, similar studies could include respondents with a larger dispersion of prior education, age, and human, social and financial capital.

The existence of support received in the family environment and the lack of individualistic and competitive aspirations create a more favorable environment for a young person to become entrepreneur. This must be taken seriously into account by educators and policy makers aiming at encouraging entrepreneurship, because in the societies studied here the motivation of prospective entrepreneurs depends on totally different drivers than those usually encountered in the Western world. Furthermore, from a gender perspective, the authors' study suggests that in societies with stronger family ties and more gender discrimination, an individual's closer social environment may not create the appropriate context for women to decide to become entrepreneurs.

A strong hierarchical culture in a society goes against the intention of becoming an entrepreneur. That is, when people accept that social mobility is low and, thus, reversing people's relative positions in the society is unlikely, people are less prone to becoming entrepreneurs. In Western societies, where collectivism is low, the contrary holds. In the societies considered here, where family and social links are strong, entrepreneurship is considered to be a rather safer option, which is encouraged by non-individualistic values and is negatively associated with aggressive competitiveness. In those societies, formal institutions such as the government and the educational sector could play an important role to support prospective female entrepreneurs (Borges et al., 2021).

The motivation of prospective entrepreneurs in SE European countries depends on totally different drivers than those usually encountered in the Western world.

This paper presents a comprehensive review of academic research dedicated to the field of Behavioral Strategy. Based on a series of Bibliometric and network analyses, the paper identifies the prominent trend and growth patterns pertaining to the evolution of this important strategic management subfield; it documents which particular journals, articles and authors have most influenced its development, and it maps the intellectual structure and network of authors, publications and countries. Finally, the paper considers the substantive research themes emerging from the analyses reported, in terms of their implications for future work.

The authors undertook a series of Bibliometric and network analyses of 217 relevant articles, published between 1975 and 2020, in journals listed in the Scopus database, using R-studio and VOSviewer. Articles incorporated in the study were selected based on relevant key terms searched from the title, abstract and list of keywords associated with each publication.

The results demonstrate that behavioral strategy has enjoyed robust and sustained growth, with widespread impact across many areas of the heterogeneous business and management field as a whole. Three distinct periods are identified: an infancy stage (prior to 1999); a steady growth stage (1999–2010); and a take-off stage (2011 onwards). The top three journals in terms of content coverage, based on the number of relevant articles published in relation to behavioral strategy, are Strategic Management Journal, Advances in Strategic Management (AiSM) and the Journal of Management, while the top three most influential journals, in terms of citations pertaining to Behavioral Strategy, based on an analysis of citations in the Scopus database, are Strategic Management Journal, Academy of Management Perspectives and Journal of Management Studies. Gerard P. Hodgkinson and Thomas C. Powell are the most prolific authors. The emerging themes based on intellectual structures have been identified as Behavioral Strategy, Behavioral Theory of Firm; Strategic Leadership and Dynamic Capabilities; and Strategic Cognition and Decision Making.

The study contributes to knowledge advancement concerning Behavioral Strategy by opening new possibilities to discover important research areas.

The study is the first of its kind on Behavioral Strategy providing a comprehensive systematic literature review.

This commentary argues that social marketing and the application of behavioural sciences to policy constitute two converging paths towards better policies. It highlights points of convergence and divergence between both disciplines and the potential benefits of further embedding social marketing principles and methods within the recent trend of applying behavioural sciences to policy.

The commentary relies on a review of the behavioural sciences and social marketing literatures and on an analysis of institutional reports reviewing cases of behaviourally informed policies.

Behavioural sciences are increasingly informing policies to promote societal well-being. Social marketing has seldom been explicitly considered as being part of this phenomenon, although it is de facto. Both disciplines share similar end-goals, inform similar policy applications and are rooted in behavioural analysis. They diverge in their theoretical frameworks, their relative emphasis on behaviour change and the span of interventions they generate. Several benefits of embedding social marketing principles and methods within the current way of applying behavioural sciences to policy are identified.

Scholars applying behavioural sciences to policy are encouraged, when appropriate, to use the insights and methods from social marketing. Social marketing can engage in a dialogue with behavioural sciences to explore how to pilot the convergence of both approaches in practice.

The novelty of this contribution lies in providing the first comparison of the application of behavioural sciences to policy with social marketing, and in using the policy-making cycle framework to map the contributions and complementarities of both disciplines.

The purpose of this paper is to explore the influence of several core behavioural propensities on financial risk tolerance (FRT). Additionally, this paper examines the moderating effect of ethnicity on the relationship between behavioural propensities and FRT.

A sample of 1,204 completed and usable questionnaires were collected from undergraduate students majoring in business, economics and finance and analysed them using SmartPLS 2.0 software.

The findings reveal that propensity for trust has the highest impact on FRT followed by propensity for regret and happiness in life, while propensity for social interaction is not significantly associated with FRT. Ethnicity significantly moderates the relationship between three behavioural propensities (propensity for regret, propensity for trust and happiness in life) and FRT.

This study contributes to the assessment of individuals’ FRT incorporating behavioural propensities, which in turn contributes to the field of behavioural finance.

The traditional newsvendor model has focused on deriving the optimal order quantity that minimises the balance between stocking too much or too less number of products. However, the managers make inventory decisions based on intuitions and shortcuts, which may involve human errors and biases. The effect of cognitive biases and heuristics influencing the inventory ordering decisions in newsvendor settings is highlighted. The advancement of research associated to the newsvendor biases is reviewed to appreciate the behavioral aspects of the minds underlying this process.

The use of experimental and non-experimental methods to investigate the ordering behaviour of newsvendors is described and we present a framework of the existing literature and highlight the research gaps to point to future research possibilities and priorities.

The proposed framework gives a systematic approach to confirm the existence of a substantial scope of research opportunities and points to specific areas for further research. It synthesizes the existing results of behavioral newsvendor research and will act as a key reference paper. In addition, it will help the practitioners and software tool vendors to comprehend the behavioral perspective of newsvendor preferences and design strategies to mitigate this effect. The insights will be helpful for academicians, researchers and practitioners working in the areas of experimental economics, behavioral economics, behavioral operations, bounded rationality theory, newsvendor modelling and supply chain contracts.

A summary of literature in this evolving area of research is very scarce. Considering the impact of behavioral economics on managerial decisions in the contemporary world, it is highly important to have an educational summary which can act as a tool for the practitioners and researchers in the area of behavioral operations management.

Criticism directed at neoclassical economics has failed to replace it with a similar grand theory. The authors argue that one possible explanation may lie in the failure of economists to formulate an opinion as to the philosophical foundations of the author’s object of study. The paper aims to discuss this issue.

The argument proceeds in two steps. First, the authors review the prevailing philosophical view of “the self-interest theory (S)”, which is one of the most powerful constituents of today’s economics, and social theorizing in general. Second, the authors present a reasoning framework in which rationality becomes intelligible within a schema of integrating the self’s external and internal conditionalities into a unified view of human reasoning.

Self-interest has been supposed to give the authors direction about what, concretely, to do, but, on the way, the authors have learned that defining rationality is necessarily a life-dependent process. The conflicts of reasons call for a revised S according to which rationality implies consistency among a person’s competing behavioural drivers rooted in three ontological realms, natural, social, and cultural.

First, understanding the purpose of one’s actions in rational terms demands redirecting attention from outcomes in terms of utility, profits, or welfare to a social profile of a rational person, with real life coordinates in space and time, as well as the personal histories of that individual. A change in explaining aspirations leads, and this is the second implication, to change in defining the meaning of economic (or social) behaviour. Decision making is not necessarily a process of virtuously selecting the best available options, but assessing and acting according to the opportunity of choice; it is not about freedom of choice, but about the degree of freedom a person is willing and is able to take advantage of.

The purpose of this general review paper is to provide a comparison and evaluation of the treatment of pricing by the disciplines of economics and marketing.

It is from three perspectives that the marketing and economics approaches to pricing are reviewed, namely, buyers' response to price, firm's determination of price, and industry‐ or economy‐wide role of price.

A comparative review of the relevant marketing and economics literature shows that there are important differences between the two disciplines in their treatment of pricing. Marketing demonstrates a richer and more empirically based treatment of the pricing issue from the buyer's perspective, while economics is unchallenged from the economy‐wide perspective. The differences found between the marketing and economics approaches to pricing are mostly due to their different historical origins, primary concerns and doctrinal evolution. In contrast, interdisciplinary loans especially from behavioral science have made possible considerable advances in marketing, particularly in the understanding of the buyer's perspective.

Previous reviews of the pricing literature do not attempt to provide a direct comparison and evaluation and offer no explanation for the observed differences among the economics and the marketing disciplines regarding their treatment of the pricing issue. The value and originality of the current paper lies in the fact that it represents the first attempt to provide such a comparison and evaluation.