ECON9260 – Topics in Behavioural Economics

Learning outcome

Behavioral Economics seeks to enrich the standard model of the rational actor with stable preferences. Rather than assuming selfish rationality the behavior of economic agents are observed in experiments, usually in the lab but to an increasing extent in the field. This forms the basis for more elaborate theories of economic behavior where agents e.g. face problems of self-control, care about others and are influenced by reference points. The field is constantly evolving, new theories are developed and the empirical basis growing as more experiments are conducted, and the number of application is inc