Browse Hierarchy ECOM201: Behavioural Economics

There is mounting evidence that people violate many of the "rationality" assumptions of mainstream economics. Behavioural Economics is a relatively new field that studies such violations and proposes theories to explain them. Key topics include the susceptibility of behaviour to "irrelevant" factors, biases in judgment under uncertainty, overconfidence, dynamic inconsistency, other-regarding preferences, fairness, and departures from the standard game-theoretic notion of Nash equilibrium.