Behavioral Economics, Markets and Public Policy

Catalog description

Behavioral economics has revealed a variety of systematic ways in which people deviate from being perfectly selfish, rational, optimizing agents. These findings have important implications for government policy and firm behavior. This course will explore these implications by answering two main questions: (1) what does behavioral economics imply for when and how the government should intervene in markets? (2) What does behavioral economics imply for firms' pricing and production decisions? The course will present the standard economic approaches to answering these questions and then explore how answers change when we consider that people act in behavioral ways. Towards the end of the course, we will investigate specific policy questions, allowing us to debate solutions while hearing from policy makers operating in a world of behavioral agents.