Chapter Preview
TopMain Focus
Based on framed rationality, the theoretical foundation for a behavioral planning theory includes, but is not limited to, four aspects: decision analysis, cognitive science, property right, and garbage can model, described as follows.
Key Terms in this Chapter
Computer Simulations: A new analytical tool that applies computers to simulate complex phenomena in natural and social sciences.
Planning Theory: An evolving subfield of urban planning that depicts how urban development takes place and how plans do and should be made.
Stream of Opportunities Model: A conceptual model that explains and justifies how planners do and should make decisions to solve problems based on garbage can model original proposed by Cohen, March, and Olsen (1972) .
Complexity: A technical notion of complexity theory that attempts to understand systems behavioral across social and natur4al phenomena, mainly through computer simulations.
Behavioral Economics: A branch of economics that modifies the basic assumption of maximization of expected utility of neo-classical economics through conducting psychological experiments.
Decision Analysis: An emerging interdisciplinary field that understands how decision makers do and should make decisions and develops methods to help decision makers to make effective decisions.
Prospect Theory: A descriptive theory of how people make choices under risks and is mainly developed by Daniels Kahneman and Amos Tversky, the former being a founder of behavioral economics and a Nobel laureate of economics in 2002.