Abstract
In recent years, behavioral economics has gained much attention in psychology and public policy. Despite increased interest and continued basic experimental studies, the application of behavioral economics to therapeutic settings remains relatively sparse. Using examples from both basic and applied studies, we provide an overview of the principles comprising behavioral economic perspectives and discuss implications for behavior analysts in practice. A call for further translational research is provided.
Similar content being viewed by others
References
Ainslie, G. (1974). Impulse control in pigeons. Journal of the Experimental Analysis of Behavior 21, 485–489.
Ariely, D. (2008). Predictably irrational: The hidden forces that shape our decisions. New York, NY: Harper-Collins.
Ariely, D. (2010). The upside of irrationality: The unexpected benefits of defying logic at work and at home. New York, NY: HarperCollins.
Barkley, R. A., Edwards, G., Laneri, M., Fletcher, K., & Metevia, L. (2001). Executive functioning, temporal discounting, and sense of time in adolescents with attention deficit hyperactivity disorder (ADHD) and oppositional defiant disorder (ODD). Journal of Abnormal Child Psychology, 29, 541–556.
Bickel, W. K., Green, L., & Vuchinich, R. E. (1995). Behavioral economics. Journal of the experimental Analysis of Behavior, 64, 257–262.
Bickel, W. K., Jarmolowicz, D. P., Mueller, E. T., & Gatchalian, K. M. (2011). The behavioral economics and neuroeconomics of reinforcer pathologies: Implications for etiology and treatment of addiction. Current Psychiatry Reports, 13, 406–415.
Bickel, W. K., Marsch, L. A., & Carroll, M. E. (2000). Deconstructing relative reinforcing efficacy and situating the measures of pharmacological reinforcement with behavioraleconomics: A theoretical proposal. Psychopharmacology, 153, 44–56.
Borrero, J. C., Francisco, M. T., Haberlin, A. T., Ross, N. A., & Sran, S. K. (2007). A unit price evaluation of severe problem behavior. Journal of Applied Behavior Analysis, 40, 463–474.
Broussard, C., & Northup, J. (1997). The use of functional analysis to develop peer interventions for disruptive classroom behavior. School Psychology Quarterly, 12, 65–76.
Burns, M. K. (2011). School psychology research: Combining ecological theory and prevention science. School Psychology Review, 40, 132–139.
Camerer, C. (1999). Behavioral economics: Reunifying psychology and economics. Proceedings of the National Academies of Science, 96, 10575–10577.
Camerer, C. F., Loewensein, G., & Rabin, M. (Eds.). (2004). Advances in behavioral economics. Princeton, NJ: Princeton University Press & Russell Sage Foundation.
Chapman, G. B. (1996). Temporal discounting and utility for health and money. Journal of Experimental Psychology: Learning, Memory, and Cognition, 22, 771–791.
Collier, G., Johnson, D. F., & Morgan, C. (1992). The magnitude-of-reinforcement function in closed and open economies. Journal of the Experimental Analysis of Behavior, 57, 81–89.
Critchfield, T., & Reed, D. D. (2004). Conduits of translation in behavior-science bridge research. In E. Ribes Iñesta & J. E. Burgos (Eds.), Theory, basic and applied research, and technological applications in behavior science: Conceptual and methodological issues (pp. 45–84). Guadalajara, Mexico: University of Guadalajara Press.
Dixon, M. R., Horner, M. J., & Guercio, J. (2003). Self-control and the preference for delayed reinforcement: An example in brain injury. Journal of Applied Behavior Analysis, 36, 371–374.
Francisco, M. T., Madden, G. J., & Borrero, J. (2009). Behavioral economics: Principles, procedures, and utility for applied behavior analysis. The Behavior Analyst Today, 10, 277–294.
Green, L., & Freed, D. E. (1993). The substitutability of reinforcers. Journal of the Experimental Analysis of Behavior, 60, 141–158.
Green, L., Myerson, J., & Ostaszewski, P. (1999). Discounting of delayed rewards across the life span: Age differences in individual discounting functions. Behavioural Processes, 46, 89–96.
Griffiths, R. R., Brady, J. V., & Bradford, L. D. (1979). Predicting the abuse liability of drugs and animal drug self-administration procedures: Psychomotor stimulants and hallucinogens. In T. Thompson & P. B. Dews (Eds.), Advances in behavioral pharmacology (Vol. 2, pp. 163–208). New York, NY: Academic Press.
Grosch, J., & Neuringer, A. (1981). Self-control in pigeons under the Mischel paradigm. Journal of the Experimental Analysis of Behavior, 35, 3–21.
Grunwald, M. (2009, April 2). How Obama is using the science of change. Time Magazine, April. Retrieved from http://www.time.com.
Hackenberg, T. D. (2009). Token reinforcement: A review and analysis. Journal of the Experimental Analysis of Behavior, 91, 257–286.
Hillier, B. (1991). The macroeconomic debate: Models of the closed and open economy. New York, NY: Blackwell.
Hursh, S. R. (1980). Economic concepts for the analysis of behavior. Journal of the Experimental Analysis of Behavior, 34, 219–238.
Hursh, S. R. (1984). Behavioral economics. Journal of the Experimental Analysis of Behavior, 42, 435–452.
Hursh, S. R. (2000). Behavioral economic concepts and methods for studying health behavior. In W. K. Bickel & R. E. Vuchinich (Eds.), Reframing health behavior change with behavioral economics (pp. 27–62). Mahwah, NJ: Lawrence Erlbaum Associates.
Hursh, S. R., Madden, G. J., Spiga, R., DeLeon, I. G., & Francisco, M. T. (2013). The translational utility of behavioral economics: The experimental analysis of consumption and choice. In Madden, G. J., Dube, W. V., Hackenberg, T. D., Hanley, G. P., & Lattal, K. A. (Eds.), APA handbook of behavior analysis: Vol. 2. Translating principles into practice (pp. 191–224). Washington, DC: American Psychological Association.
Hursh, S. R., Raslear, T. G., Shurtleff, D., Bauman, R., & Simmons, L. (1988). A cost-benefit analysis of demand for food. Journal of the Experimental Analysis of Behavior, 50, 419–440.
Hursh, S. R., & Roma, P. G. (2013). Behavioral economics and empirical public policy. Journal of the Experimental Analysis of Behavior, 99, 98–124.
Johnson, M. W., & Bickel, W. K. (2002). Within-subject comparison of real and hypothetical money rewards in delay discounting. Journal of the Experimental Analysis of Behavior, 77, 129–146.
Johnson, M. W., & Bickel, W. K. (2006). Replacing relative reinforcing efficacy with behavioral economic demand curves. Journal of the Experimental Analysis of Behavior, 85, 73–93.
Jones, B. & Rachlin, H. (2006). Social discounting. Psychological Science, 17, 283–286.
Kahneman, D., Slovic, A. & Tversky, A. (1982). Judgment under uncertainty: Heuristics and biases. Cambridge, United Kingdom: Cambridge University Press.
Kazdin, A. E. & Bootzin, R. B. (1972). The token economy: An evaluative review. Journal of Applied Behavior Analysis, 5, 243–372.
Kirby, K. N., & Herrnstein, R. J. (1995). Preference reversals due to myopic discounting of delayed reward. Psychological Science, 6, 83–89.
Kodak, T., Lerman, D. C., & Call, N. (2007). Evaluating the influence of postsession reinforcement on choice of reinforcers. Journal of Applied Behavior Analysis, 40, 515–527.
Kohlenberg, B. S., Hayes, S. C., & Hayes, L. J. (1991). The transfer of contextual control over equivalence classes through equivalence classes: A possible model of social stereotyping. Journal of the Experimental Analysis of Behavior, 56, 505–518.
LaFiette, M. H., & Fantino, E. (1989). Responding on concurrent-chains schedules in open and closed economies. Journal of the Experimental Analysis of Behavior, 51, 329–342.
Locke, J. (1691). Some considerations of the consequences of the lowering of interest, and raising the value of money: In a letter sent to a member of parliament. London: Awnsham and John Churchill. Retrieved from http://books.google.com
Mace, F. C., & Critchfield, T. S. (2010). Translational research in behavior analysis: Historical traditions and imperative for the future. Journal of the Experimental Analysis of Behavior, 93, 293–312.
Madden, G. J. (2000). A behavioral economics primer. In W. K. Bickel & R. E. Vuchinich (Eds.), Reframing health behavior change with behavioral economics (pp. 3–26). Mahwah, NJ: Lawrence Erlbaum Associates.
Madden, G. J., Begotka, A. M., Raiff, B. R., & Kastern, L. L. (2003). Delay discounting of real and hypothetical rewards. Experimental and Clinical Psychopharmacology, 11, 139–145.
Madden, G. J., & Bickel, W. K. (2010). Impulsivity: The behavioral and neurological science of discounting. Washington, DC: American Psychological Association.
Martens, B. K., & Kelly, S. Q. (1993). A behavioral analysis of effective teaching. School Psychology Quarterly, 8, 10–26.
Mazur, J. E. (1987). An adjusting procedure for studying delayed reinforcement. In M. L. Commons, J. E. Mazur, J. A. Nevin, & H. Rachlin (Eds.), Quantitative analyses of behavior: Vol. V. The effect of delay and intervening events on reinforcement value (pp. 55–73). Hillsdale, NJ: Erlbaum.
Neef, N. A., & Lutz, M. N. (2001). Assessment of variables affecting choice and application to classroom interventions. School Psychology Quarterly, 16, 239–252.
Neef, N. A., Shade, D., & Miller, M. S. (1994). Assessing influential dimensions of reinforcers on choice in students with serious emotional disturbance. Journal of Applied Behavior Analysis, 27, 575–583.
Persky, J. (1995). Retrospectives: The ethology of homo economicus. The Journal of Economic Perspectives, 9, 221–231.
Poling, A. (2010). Progressive-ratio schedule and applied behavior analysis. Journal of Applied Behavior Analysis, 43, 347–349.
Rachlin, H., Green, L., Kagel, J. H., & Battalio, R. C. (1976). Economic demand theory and psychological studies of choice. In G. H. Bower (Ed.), The psychology of learning and motivation (Vol. 10, pp. 129–154). New York, NY: Academic Press.
Rachlin, H., Raineri, A., & Cross, D. (1991). Subjective probability and delay. Journal of the Experimental Analysis of Behavior, 55, 233–244.
Reed, D. D. (2008). The translation of basic behavioral research to school psychology: A citation analysis. The Behavior Analyst Today, 9, 143–149.
Reed, D. D., DiGennaro Reed, F. D., Chok, J., & Brozyna, G. A. (2011). The “tyranny of choice”: Choice overload as a possible instance of effort discounting. The Psychological Record, 61, 547–560.
Reed, D. D., & Martens, B. K. (2011). Temporal discounting predicts student responsiveness to exchange delays in a classroom token system. Journal of Applied Behavior Analysis, 44, 1–18.
Roane, H. (2008). On the applied use of progressive-ratio schedules of reinforcement. Journal of Applied Behavior Analysis, 41, 155–161.
Roane, H. S., Call, N. A., & Falcomata, T. S. (2005). A preliminary analysis of adaptive responding under open and closed economies. Journal of Applied Behavior Analysis, 38, 335–348.
Roane, H. S., Falcomata, T. S., & Fisher, W. W. (2007). Applying the behavioral economics principle of unit price to DRO schedule thinning. Journal of Applied Behavior Analysis, 40, 529–534.
Roane, H. S., Lerman, D. C., & Vorndran, C. M. (2001). Assessing reinforcers under progressive schedule requirements. Journal of Applied Behavior Analysis, 34, 145–167.
Salvy, S. J., Nitecki, L. A., & Epstein, L. H. (2009). Do social activities substitute for food in youth? Annals of Behavioral Medicine, 38, 205–212.
Samuelson, P. A., & Nordhaus, W. D. (1985). Economics. New York, NY: McGraw-Hill.
Scheres, A., Dijkstra, M., Ainslie, E., Balkan, J., Reynolds, B., Sonuga-Barke, E., & Castellanos, F. X. (2006). Temporal and probabilistic discounting of rewards in children and adolescents: Effects of age and ADHD symptoms. Neuropsychologia, 44, 2092–2103.
Schouwenburg, H. C., & Groenewoud, J. T. (2001). Study motivation under social temptation: Effects of trait procrastination. Personality and Individual Differences, 30, 229–240.
Schweitzer, J. B., & Sulzer-Azaroff, B. (1988). Self-control: Teaching tolerance for delay in impulsive children. Journal of the Experimental Analysis of Behavior, 50, 173–186.
Sheridan, S. M., & Gutkin, T. B. (2000). The ecology of school psychology: Examining and changing our paradigm for the 21st century. School Psychology Review, 29, 485–502.
Sheridan, S. M., Kratochwill, T. R., & Bergan, J. R. (1996). Conjoint behavioral consultation: A procedural manual. New York, NY: Plenum Press.
Skinner, B. F. (1953). Science and human behavior. New York, NY: Macmillan.
Thaler, R. H., & Sunstein, C. R. (2008). Nudge: Improving decisions about health, wealth, and happiness. New Haven, CT: Yale University Press.
Tversky, A., & Thaler, R. H. (1990). Anomalies: Preference reversals. The Journal of Economic Perspectives, 4, 201–211.
Author information
Authors and Affiliations
Corresponding author
Additional information
The authors thank the various clinicians and behavior analysts with whom they have worked with over the years that prompted the writing of this tutorial, as well as Scott Wiggins and Dave Jarmolowicz for their assistance to the authors during the course of manuscript preparation. Finally, they acknowledge the role of their Applied Behavioral Science (ABSC) 509 students for persistently asking for examples of how basic behavioral science translates to practice. The examples derived from these conversations and discussions have been integrated throughout the tutorial.
Rights and permissions
About this article
Cite this article
Reed, D.D., Niileksela, C.R. & Kaplan, B.A. Behavioral Economics. Behav Analysis Practice 6, 34–54 (2013). https://doi.org/10.1007/BF03391790
Published:
Issue Date:
DOI: https://doi.org/10.1007/BF03391790