Economics Meets Reality: Introducing Behavioral Economics

Why do we often fail to act in our own best interests? Why do we love “coupons?” Traditional economic models of decision making assume that people make decisions in a “rational” manner (“homo economicus”). These models worked well – until they didn't! This talk provides a brief introduction to a relatively new field – Behavioral Economics – that draws on the fields of economics, psychology, sociology, and neuroscience, to provide a better explanation of what influences the choices “real” people make (“homo sapiens”). The talk will also provide examples of how governments and companies all over the world are now using behavioral insights to design and improve their policies (often called “nudging”).