The study of the spread and dynamics of popular narratives, the stories, particularly those of human interest and emotion, and how these change through time, to understand economic fluctuations and markets. A interpretation of economics advanced by the Nobel prize winner Robert Shiller.
See also narrative economics of crypto, bandwagon-bias,endowment-effect, and Tinkerbell effect.
- Shiller, Robert J. 2017. ‘Narrative Economics’. American Economic Review 107 (4): 967–1004.