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The aims of this special issue are to introduce managerial economists to a school of behavioral economics they may not yet have encountered by way of accounts by leading researchers of its basic tenets, methods, and applications. This overview introduces the
papers by setting them in the context of the development of operant behavioral economics.
Copyright 2015 John Wiley & Sons, Ltd.
It is pleasing when disciplines, whose initial development trajectories are as diverse as those of operant
psychology and microeconomics, demonstrate an
afnity that promotes both their interaction and their
mutual benet. The potential became obvious when
behavioral psychologists began to consider and
compare the ways in which micro-economists and
behavioral psychologists study behavior (Hursh,
1978, 1980, 1984; Lea, 1978). Around the same
time, some economists were seeking an experimental
analysis of their subject matter (e.g., Castro and
Weingarten, 1970; Smith, 1982). The contingencies,
likely to bring about a productive collaboration, were
being assembled. This does not mean that the interaction is seamless or without controversy who would
want that? but that two intellectual communities are
able to learn from one another and to grow as a
result.
The resulting research program, operant behavioral
economics, contributes positively to the objectives of
both disciplines by bringing theoretical perspectives
and novel methodologies to bear on each of its
constituents. With some simplication, while microeconomics permits the conceptualization of behavior
as the allocation of scarce resources among competing
ends, operant psychology (or behavior analysis, as it is
*Correspondence to: Cardiff Business School, Cardiff University,
Cardiff, Wales, UK. E-mail: foxall@cardiff.ac.uk
G. R. FOXALL
FOUNDATIONS
Background
Behavioral economics in this tradition has extended its
reach beyond conventional realms of economic behavior such as labor and consumption, to enhance the
analysis of animal behavior and welfare, anti-social
responding, addiction and health, marketing and organizational management, and other applied areas. A
central theme is the matching of relative response rates
to relative rates of reinforcement, which is closely related to the phenomenon of hyperbolic temporal
discounting. Underlying much of this work is the
pioneering contribution of Herrnstein (1961, 1970,
1997) which showed that when, in an experimental situation, an animal is presented with two operanda, A
and B, which might be keys to peck or levers to press,
each of which delivers a reinforcer on its own variable
interval (VI) schedule, the animal matches its relative
response rates to the relative rates of reinforcement actually obtained. A schedule programs the relationship
between reinforcers and responding. An interval
schedule requires that some minimum time must
elapse before a response receives reinforcement. On
a variable interval or VI schedule, the time varies between the delivery of reinforcers. In the case of the
concurrent VI schedules used in matching experiments, the schedules are in operation simultaneously
or concurrently, and independently, providing reinforcement after different durations provided at least
one response has been made since previous reinforcement. See, for example, Catania (1997). Hence, the
basic matching relationship is as follows:
Ra = Ra Rb r a = r a rb
(1)
B1
r1
slog logb
B2
r2
(2)
function of the time remaining to its possible realization having become so short) that it is preferred to
the LLR (Ainslie, 1992). This is clearly not because
of its objective value, which is by denition less than
that which can be obtained through patience, but because the time remaining to its possible realization is
now so short that it is preferred to the later but larger
reward.
Papers
In Behavioral economics and the analysis of consumption and choice, Steven Hursh and Peter Roma
present the fundamentals of the operant paradigm
and its relevance to the behavioral economics program. In particular, they note points of convergence
between the disciplines that comprise the paradigm
and remark specically on the role of the allocation
of behavioral resources among alternative reinforcers.
They provide a primer for an approach to behavioral
economics that is able to inform both the pure science
of behavior and managerial and policy decisionmaking. The central component of this approach is
the representation of the value consumers attach to
products by the use of an exponential function to capture the non-linearity of demand curves, the exponential model of demand (Hursh and Silberberg, 2008).
Essential value is shown to be a useful means by
which to categorize differences between commodities, differences between individuals toward similar
commodities, and differences in the value of commodities across different contexts of available alternatives
and disincentives, all of which have obvious echoes
in managerial concerns such as the identication of
criteria for market segmentation and innovation. An
interesting development is the capacity of
questionnaire-based methods of investigation to yield
demand curves of this form, which promises to enhance the applicability of behavioral economics to
managerial concerns, a theme that is taken up in a later
paper by Roma, Hursh, and Hadja (Hypothetical purchase task questionnaires for behavioral economic assessments of value and motivation).
Behavior analysis is an intellectually progressive
research program: its theoretical debates and its empirical ndings are stimulating and informative. In Baum
(1973), William Baum argued that the central component of operant psychology is a sequence of responses
that is related correlatively to a sequence of
reinforcers. His seminal work in the derivation of the
Generalized Matching Law was noted previously.
Central to this work is the distinction between a
Manage. Decis. Econ. (2015)
DOI: 10.1002/mde
G. R. FOXALL
G. R. FOXALL
G. R. FOXALL
CONCLUDING COMMENTS
In embracing microeconomics, operant psychology
has conrmed the relevance of neoclassical analysis
to the comprehension of complex behavior in experimental and natural settings. Behavioral economics
is often a banner beneath which orthodox economic
theory is criticized on the basis that it is inconsistent
with this or that of psychological or sociological
approach. Operant behavioral economics, somewhat
by contrast but not uncritically, demonstrates the relevance and usefulness of microeconomic theory to our
understanding of behavioral choice that has already
been well-researched from a particular psychological
perspective. At a time when the economics and psychology movement is capturing the imaginations of
scholars from both disciplines, the exploration of operant behavioral economics is particularly apposite. I am
deeply grateful to the authors and reviewers who have
contributed to a collection of papers on operant behavioral economics which, I trust, will be of value to both
behavior analysts and managerial economists.
Copyright 2015 John Wiley & Sons, Ltd.
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