Behavioural economics

Research in economics has increasingly incorporated fields such as psychology, sociology, and biology. Together with this, the methods in economic research have expanded to include designed experiments and more recently advanced technology such as fMRI. Findings from such empirical research, along with interactions with other fields using the new methods, provide valuable input for the development of new models of economic behaviour and improve the applicability of economic theories. This unit introduces findings in psychology, behavioural and experimental economics and discuss alternative models of individual decisions and the related implications in economic exchange.