Beyond Behavioural Economics

Catalog description

In recent years, there has been an explosion of interest in studying how people make economic choices. Behavioural economics has become a major field in the social sciences. Large numbers of “biases” and “noise” in which individuals deviate from rational behaviour have been identified, often through experiments. But less attention has been paid to what is meant by “rational” behaviour. In this course, we will study why and how rational behaviour in a world of uncertainty cannot be equated with traditional optimising behaviour. Using examples from economics, law and politics, we will explore how people do and should take decisions under uncertainty. Our brains do not function like computers, and for good reason. Successful evolution has given us the capacity to cope with extraordinarily complex situations. The course will use a number of case studies to illustrate decision taking in both business and law.