Morrison, Kate

Potts, Jason

University of Queensland eSpace

 
Toward behavioural innovation economics – Heuristics and biases 
in choice under novelty 
1 
 
 
Kate Morrison, Think Play Do Consulting, Imperial College, London, UK  
Jason Potts, School of Economics Discussion Paper No. 379, November 2008, School of Economics, The 
University of Queensland. Australia. 
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Abstract  
A framework for ‘behavioural innovation economics’ is proposed here as a synthesis of behavioural economics 
and innovation economics in the specific context of choice under novelty. We seek to apply the heuristics and 
biases framework of behavioural economics to the study of the innovation process in order to map and analyze 
systematic choice failures in the innovation process. We elaborate the distinction between choice under 
uncertainty and choice under novelty, as well as drawing out the ‘efficient innovation hypothesis’ implicit in 
most behavioural models of innovation. The subject domain of a research program for behavioural innovation 
economics is then briefly outlined in terms of a catalogue of characteristic ways in which choice under novelty 
renders innovation processes subject to failure.  
 
 
EPrint Type: Departmental Technical Report 
Keywords: bounded rationality, novelty, innovation process, innovation failure 
Subjects:  
ID Code: JEL Classification: D8, D9, L2, O3 
Deposited By:  
 
Kate Morrison 
Think Play Do Consulting 
Imperial College, London 
UK 
Jason Potts 
School of Economics 
The University of Queensland. Australia. 
email: j.potts@economics.uq.edu.au 
 
                                                          
 


Toward Behavioural Innovation Economics – Heuristics and Biases in Choice under Novelty. School of Economics Discussion Paper No. 379

https://espace.library.uq.edu.au/view/UQ:159497/DP379November2008abstract.pdf

Toward Behavioural Innovation Economics – Heuristics and Biases in Choice under Novelty. School of Economics Discussion Paper No. 379

Abstract

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