ECN 420E - Behavioural Economics

Course Objectives

: Standard economic theory assumes that individuals are fully rational decision-makers. Behavioral economics advances existing economic models by identifying ways in which individuals are irrational. In the course, we will study how behavioral economists explain a range of psychological and social phenomena, and how those explanations differ from standard economic ones such as drug use, crime, gambling, over-eating, and overconfidence. In particular, we will study various ways in which irrationality influences people’s judgment and decision-making.

Course Description

: Standard economic theory assumes that individuals are fully rational decision-makers. Behavioral economics advances existing economic models by identifying ways in which individuals are irrational. In the course, we will study how behavioral economists explain a range of psychological and social phenomena, and how those explanations differ from standard economic ones such as drug use, crime, gambling, over-eating, and overconfidence. In particular, we will study various ways in which irrationality influences people’s judgment and decision-making.