Behavioral Economics

Catalog description

This course will explore recent discoveries in human psychology that have transformed our understanding of economics and created the influential new field of behavioral economics. Classical economics assumes that people make rational decisions based on all available information to optimize their well-being. However psychologists have shown that people take mental shortcuts that lead to predictable errors. This class will provide examples of how social scientists apply human decision making theory in a broad array of fields, such as personal finance, governmental programs, and business.