Markets and Manipulation

There is a growing appreciation in economics that people have emotional vulnerabilities, commitments to social norms, and systematic irrationalities, which impact their decision making and choice in the marketplace. The flip side of this is that human beings are susceptible to being manipulated by unscrupulous agents who are single-minded about marketing their services and wares. This paper reviews George Akerlof and Robert Shiller's book, Phishing for Phools: The Economics of Manipulation and Deception, alongside other writings in the field, and discusses how this research agenda can be taken forward. The paper shows how this new research can shed light on the ubiquity of corruption in so many societies, and proposes ideas for controlling corruption.

Bibliographic Details

Main Author:	Basu, Kaushik
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2016-04
Subjects:	CREDIT MARKETS, UTILITY FUNCTION, FINANCIAL FRAUD, TRANSPORTATION INFRASTRUCTURE, FINANCIAL PRODUCTS, WELFARE ECONOMICS, PEOPLE, VULNERABLE PEOPLE, UTILITY FUNCTIONS, BUSINESS COMMUNITY, LOAN SHARKS, STOCK, INFORMAL BANKING, VILLAGE, SALES, INCOME, INTEREST, EXPECTATIONS, BIAS, INTEREST RATE, DISCRIMINATION, INEQUALITIES, RECESSION, POLITICAL ECONOMY, WELFARE, GAME THEORY, INCENTIVES, LOAN, EQUILIBRIUM, INDIFFERENCE CURVES, FREE MARKETS, CORRUPTION, WEALTH, SAVING, BANKRUPTCY, ECONOMIC ACTIVITY, INTERNATIONAL BANK, OLIGOPOLY, LENDER, DEVELOPMENT, BIASES, CHOICE, ADVERTISING, INFLUENCE, EXPLOITATION, SAVINGS, MORTGAGES, FINANCIAL PRODUCT, CREDIT RATINGS, COLLUSION, DEVELOPMENT ECONOMICS, MONEY, EXTORTION, PRODUCTS, CHILD DEVELOPMENT, EXPECTED RETURN, EXTERNALITIES, MONOPOLY, FAILURES, NORMAL PROFIT, ECONOMIC INEQUALITY, PAYMENT, UTILITY THEORY, MARKETS, DEBT, PUBLIC FINANCE, DECISION MAKING, ECONOMIC LIFE, PRODUCT, DIVIDENDS, UTILITY, APPLICATION PROCESS, FINANCE, DEVELOPMENT POLICY, TAXES, BANKS, INVESTMENT BANKS, HUMAN CAPITAL, CAPITAL, WAGES, NASH EQUILIBRIUM, FINANCIAL CRISIS, DEBT OBLIGATIONS, FAMILY, VALUE, GENDER, BANK, PATERNALISM, CREDIT, FREE MARKET, DEMAND, AGRICULTURE, CONSUMERS, PROPERTIES, SALE, ASSETS, MARKET, ECONOMIC THEORY, EMPLOYERS, ECONOMICS, SECURITIES, BUSINESS PEOPLE, NEOCLASSICAL ECONOMICS, TRADE, INTERESTS, GOODS, THEORY, INVESTMENT, MONEYLENDER, BANKRUPTCIES, FINANCIAL MARKETS, SUPPLY, MARKETPLACE, EMPLOYEE, COMPETITIVE EQUILIBRIUM, EARNINGS, STUDENTS, BORROWING, INVESTMENTS, INVISIBLE HAND, FAMILIES, INHERITANCE, PROFITS, ENTREPRENEUR, OUTCOMES, INEQUALITY, EMPLOYEES,
Online Access:	http://documents.worldbank.org/curated/en/2016/04/26285650/markets-manipulation-time-paradigm-shift https://hdl.handle.net/10986/24227
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