Economists working on behavioral economics have been awarded the Nobel Prize four times in recent years. This book explores this innovative area and in particular focuses on the work of Harvey Leibenstein, one of the pioneers of the discipline. The topics covered in the book include agency theory; dynamic efficiency; evolutionary economics; X-efficiency; the effect of emotions, specifically affect on decision-making; market pricing; experimental economics; human resource management; the Carnegie School, and intra-industry efficiency in less developed countries.

1. Introduction: Leibenstein as a Behavioral Pioneer Roger Frantz 2. The Neuroeconomics of Trust Paul Zak 3. Leibenstein's Selective Rationality And Dual Motives As Expressions Of Brain Physiology Robert Cory 4. The Evolutionary Foundations of Behavioral Economics. Harvey Leibenstein' s Legacy Kurt Dopfer 5. 'Efficacy' vs 'X-Efficiency' Jason Potts 6. Consumer X-Inefficiency and the Problem of Market Regulation Peter Earl 7. Leibenstein's Theory of Consumption Behavior Paul Albanese 8. Effort Discretion and Economic Agency and Behavioral Economics: Transforming Economic Theory and Public Policy Morris Altman 9. Understanding High Performance Work Systems: The Joint Contribution of Economics and Human Resource Management John Tomer 10. X-Efficiency and Underdevelopment: A Leibenstein's Application of Behavioral Economics Hamid Hosseini 11. Empirical Evidence on X-Efficiency, 1967-2004 Roger Frantz