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|Meet Day||M/W||2:40 PM - 4:00 PM||L230|
This course will examine the relationship between behavioral economics and public policy. 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 systematically depart from the predictions of standard economic models. Behavioral economics attempts to understand these departures and integrate psychologists’ understanding of human behavior into economic analysis. The course will review the major themes of behavioral economics and address the implications for public policy in a wide variety of domains, including: retirement savings, social security, household borrowing (credit cards, mortgages, payday lending), education, energy use, health care, addiction, organ donation, tax collection and compliance, and social welfare programs.