ECO 404 - Behavioral Economics

Research continues to demonstrate that the economic decisions of individuals and groups deviate, sometimes dramatically, from those predicated by standard economic theorys 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 how this rapidly changing subfield informs the larger field of economics. Topics include bounded rationality, prospect theory, reference dependence, social preferences, anchoring, framing, and priming, moral balancing, and applications of behavioral economics to public policy.

ECO 404 and 504 cannot both be taken for credit.

General Education Requirements: Social Context and Institutions.

Prerequisites: A grade of C- or better in ECO 220

Course Typically Offered: Fall

Credits: 3