Mousavi, Shabnam

Associate Researcher

Main Focus

  • action
  • emotions
  • heuristics
  • complexity
  • man-machine behavior

Project Participation

Lost and Found Emotions in the History of Economic Modeling

Curriculum Vitae

Shabnam Mousavi was once an electrical engineer, then obtained a PhD in Economics and one in Statistics from Virginia Tech. She is a transdisciplinary scientist exploring the many aspects of human behavior. She has held university factulty positions in finance at Johns Hopkins and Georgia State and in statistics at Penn State. She has been a fellow of the Max Planck Institute for Human Development since 2007, as well as a network member of the University of Chicago Wisdom Project since 2008. She is past president of the Society for the Advancement of Behavioral Economics (2018-20). Shabnam is editor-in-chief for Mind and Society and for Behavioural Economics for Public Policy, and editorial board member for the Journal of Behavioral & Experimental Economics. She serves on the executive committee of the Herbert Simon Society, steering committee of the Bank of Italy BEFAIRLY initiative; and the advisory boards of Evonomics, Panthera Solutions, the Ethics Labs of the Technical University of Munich (TUM), and the Behavioral Decision Making Labs of the American University in Cairo.

Her work emanating from interdisciplinary collaboration with scholars of economics, psychology,  philosophy, statistics/mathematics, and physics has appeared in academic journals across disciplines, including Brain and Behavioral Science, Business Research, Economic Methodology, Quality Technology, Risk Management in Financial Institutions, and featured internationally in Changing Business, Die Zeit, Johns Hopkins Health Review, John Hopkins Magazine, Neue Züricher Zeitung, Science News, CBC's The Current, and Conversation. She is co-author/co-editor of Handbook of Behavioral Economics (2017), Behavioral Finance Revolution (2018), and A Fast and Frugal Finance (2019). She is recipient of A Wisdom Project grant from the University of Chicago, and a Think Forward Initiative grant from the ING Bank. Currently, she is working on "Lost & Found Emotions in the History of Economic Modeling". as a recipient of the "Original - isn't it?" Award from the Volkswagen Foundation.



Companion to Herbert Simon (coedited with Gerd Gigerenzer and Ricardo Viale). Edward Elgar. forthcoming 2023.

Financial Education and Risk Literacy (coedited with Barbara Alemanni, Umberto Filotto and Riccardo Viale). In Behavioral Financial Regulation and Policy Series. Edward Elgar. 2021.

A Fast and Frugal Finance: Bridging Contemporary Behavioral Finance and Ecological Rationality (coauthored with William Forbes and Aloysius Igboekwu). Elsevier. 2019.

The Behavioral Finance Revolution: A New Approach to Financial Policies and Regulations (coedited with Barbara Alemanni, Umberto Filotto and Riccardo Viale). In Behavioral Financial Regulation and Policy Series. Edward Elgar. 2018.

Handbook of Behavioral Economics (coedited with Roger Frantz, Shu-Heng Chen, Kurt Dopfer and Floris Heukelom). Routledge. 2017.

Doctoral Dissertations

A Log-Likelihood Based CUSUM Control Chart for Monitoring Proportions with Correlated Observations. Advisor: Marion R. Reynold, Jr., Virginia Tech. 2006.

Methodological Foundations for Bounded Rationality as a Primary Framework. Advisor: T. Nicholaus Tideman, Virginia Tech. 2002.

Select Articles

Mousavi, S. and S. Sunder (2022). Emergence and Embodiment in Economic Modeling.Frontiers in Psychology 13: 814888. doi: 10.3389/fpsyg.2022.814844.

Mousavi, S. and S. Sunder (2022). Framing Human Action in Physics: Valid Reconstruction, Invalid Reduction. Cowles Foundation Discussion Paper No 2326. available at:

Mousavi, S. and T.N. Tideman (2020). Beyond Economists' Armchair: The Rise of Procedural Economics. In R. Viale (ed.) Handbook of Bounded Rationality. Routledge

Mousavi, S. and S. Sunder (2019). Physical Laws and Human Behavior: A Three-Tier Framework. Cowles Foundation Discussion Paper No 2173. doi: 10.31219/

Mousavi, S. and J. Schulkin (2019). Ecological Rationality and Evolutionary Medicine: A Fundamental Bridge in Medical Education. In J. Schulkin and M. Power (eds) Integrating Evolution into Medical Education: An Evolving Perspective. Oxford University Press.

Kheirandish, R. and S. Mousavi (2018). Herbert Simon, Innovation, and Heuristics. Mind and Society 17: 1-13. doi: 10.1007/s11299-019-00203-6

Mousavi, S. (2018). Behavioral Policymaking with Bounded Rationality. In R. Viale, S. Mousavi, B. Alemanni and U. Filotto (eds) The Behavioral Finance Revolution: A New Approach to Financial Policies and Regulations. Edward Elgar. 20-32.

Mousavi, S. (2018). What Do Heuristics Have to Do with Policymaking? Journal of Behavioral Economics for Policy 2 (1), 69-74.

Mousavi, S. (2018). Book Review: Handbook of the Economics of Risk and Uncertainty. Frontiers of Psychology 9: 730. doi: 10.3389/fpsyg.2018.00730

Mousavi, S. and G. Gigerenzer (2017). Heuristics are Tools for Uncertainty. Journal of Homo Oeconomicus 34, 361-379.

Mousavi, S. and D. Funder (2017). Accurate Perceptions Do Not Need Complete Information to Reflect Reality. Behavioral and Brain Sciences 40, e12. doi: 10.1017/S0140525X15002393

Nagel, R., A. Bayona, R. Keirandish and S. Mousavi (2017). Reinhard Selten, the Dualist. In R. Frantz, S. Chen, K. Dopfer and S. Mousavi (eds) Handbook of Behavioral Economics. Routledge. 66-87.

Mousavi S. (2017a). Gerd Gigerenzer and Vernon Smith on Ecological Rationality and Heuristics. In R. Frantz, S. Chen, K. Dopfer and S. Mousavi (eds) Handbook of Behavioral Economics. Routledge. 280-296.

Mousavi, S. (2017b). Book Review: What Makes People Tick? Journal of Bioeconomics 19(2), 253-256. doi: 10.1007/s10818-017-9244-0

Mousavi, S., H. Neth, B. Meder and R. Kheirandish (2017). Heuristics: Fast, Frugal, and Smart. In M. Altman (ed.), Handbook of Behavioral Economics and Smart Decision-Making: Rational Decision-Making within the Bounds of Reason. Edward Elgar. 101-118.

Mousavi, S. (2015). Amos Tverskey - Encyclopedia Entry. In M. Altman (ed.) Real-World Decision Making: An Encyclopedia of Behavioral Economics. Greenwood. 447-450.

Mousavi, S. and G. Gigerenzer (2014). Risk, Uncertainty, and Heuristics. Journal of Business Research 67(8). 1671-1678.

Mousavi, S. and R. Kheirandish (2014). Behind and Beyond a Shared Definition of Ecological Rationality: A Functional View of Heuristics. Journal of Business Research 67(8). 1780-1785.

Mousavi, S. and G. Gigerenzer (2011). Revisiting the “Error” in Studies of Cognitive Error. In D. A. Hofmann, and M. Frese (eds), Errors in Organizations. Society for Industrial and Organizational Psychology (SIOP) Frontiers Series Book. Psychology Press, Taylor and Francis. 97-112.

Shefrin, H. and S. Mousavi (2010). Prediction Tools: Financial Market Regulation, Politics, and Psychology. Journal of Risk Management in Financial Institutions 3(4). 318-333.

Mousavi, S. and M. R. Reynolds, Jr. (2009). A CUSUM Chart for Monitoring a Proportion with Autocorrelated Binary Observations. Journal of Quality Technology 41(4). 401-414.

Mousavi, S. and M. R. Reynolds, Jr. (2008). Generalized Markov Binary CUSUM. American Statistical Association Joint Statistical Meetings Papers and Proceedings.

Fraker, S. E., W.H. Woodall and S. Mousavi (2008). Performance Metrics for Surveillance Schemes. Quality Engineering 20(4). 451 – 464.

Barton, A., S. Mousavi and J. R. Stevens (2007). A Statistical Taxonomy and Another "Chance" for Natural Frequencies. Behavioral and Brain Sciences 30. 255-6.

Haller, H. H. and S. Mousavi (2007). Uncertainty Improves the Second Best. In M. Abdellaoui, R. Luce, M. J. Machina, and B. Munier (eds), Uncertainty and Risk: Mental, Formal, Experimental Representations. 85-100.

Hewett, R., C.A. Holt, G. Kosmopoulou, C. Kymn, C., C.X. Long, S. Mousavi and S. Sarangi (2005). A Classroom Exercise: Voting by Ballots and Feet. Southern Economics Journal 72(1). 253-263.

Mousavi, S. and J. Garrison (2003). Toward a Transactional Theory of Decision Making: Creative Rationality as Functional Coordination in Context. Journal of Economic Methodology 10(2). 131-156.

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