ECO 404 - Behavioral and Experimental Economics

Experimental research continues to demonstrate that the economic decisions of individuals and groups deviate, sometimes dramatically, from those predicated by standard economic theory’s rational actor model. Behavioral economics seeks to explain the economic decision-making of consumers and citizens, as psychologically complex, cognitively limited, emotional, social decision-makers. This course explores the foundations of behavioral economics and develops skills in designing and conducting economic experiments for the development of new behavioral insights. Topics include bounded rationality, prospect theory, reference dependence, social preferences, anchoring, framing, and priming, moral balancing, and applications of behavioral economics to public policy. The semester culminates in the creation of an experimental research proposal.

ECO 404 and 504 cannot both be taken for credit.

General Education Requirements: Social Context and Institutions.

Prerequisites: ECO 120 or permission.

Course Typically Offered: Alternating Years.

Credits: 3