ECO 321 Behavioral Economics

Standard economic theories represent people in ways that are often different from how they actually behave.  This course studies the limits of the traditional economic assumption of rational decision making.  It will use evidence from psychology and consider social, cognitive and emotional factors that influence the decision of individuals and institutions, including consumers, borrowers and investors.  Incorporating these factors can make economic theory and predictions more accurate.  In addition, the course will analyze the impact of behavioral economic concepts on markets, investments, and resources allocation.  Three lecture hours per week.