Behavioral Economics

Catalog description

Behavioral economics introduces the students to the interplay of psychology and economics in every day decision-making. It helps explain why economic decisions are not always rational, and why we may splurge on a lavish meal yet, cut coupons to save a few cents on a loaf of bread. In other words, behavioral economics helps us understand that human rationality is bounded, which in turn effects how we decide how much we are willing to pay for a cup of coffee or a new car. More often than not we tend to overpay, underestimate or procrastinate, why? Some behavioral economists believe that these seemingly misguided behaviors are neither random nor senseless and tend to be "predictably irrational".