Behavioral Economics examines how economic behavior deviates from standard economic predictions when assumptions regarding preferences, beliefs, and decision-making processes are altered. While standard economic theory yields powerful and useful predictions, some of its main assumptions have been repeatedly shown to fail in certain contexts. Taking the standard theory as a starting point, we will study how these deviations from assumptions affect behavior. The implications are relevant for decision-making in various contexts, such as consumption and saving decisions, labor supply, and social policy.
- Teacher
Martín Brun Moratorio