Behavioral Econometrics for Psychologists

We make the case that psychologists should make wider use of structural econometricmethods. These methods involve the development of maximum likelihood estimatesof models, where the likelihood function is tailored to the structural model.In recent years these models have been developed for a wide range of behavioralmodels of choice under uncertainty. We explain the components of thismethodology, and illustrate with applications to major models from psychology. The goal is to build, and traverse, a constructive bridge between themodeling insights of psychology and the statistical tools of economists.