API-305M: Behavioral Economics and Public Policy

Semester: Not Offered

Credit: 0.5

Faculty: Daniel Hojman

Schedule

Day Time Location
First Day
Meet Day
Review

Description

This course studies the policy implications of behavioral economics. In contrast to the standard rational model of economic behavior, human beings have limited cognitive abilities and limited willpower. Because of this, individuals frequently make decisions that depart systematically from the predictions of economists’ standard models. Behavioral economics attempts to understand these departures and, more generally, integrate psychologists’ understanding of human behavior into economic analysis. What is the role of government if individuals make mistakes or have self-control problems that make them act against their own well-being? How can the government incorporate our understanding of actual behavior to model the impact of policy interventions? The course will review the major themes of behavioral economics and address the implications of these finds for health, finance, media, law, and politics. Particular issues such as savings, retirement, addiction, and media bias,