Behavioral Economics

A famous violation of expected utility theory in which people treat certainty differently from nearby high probabilities.

Preferences that place positive weight on other people's well-being, affecting giving, cooperation, and public-goods provision.

A situation where outcomes may be known but the probabilities attached to them are not reliably pinned down.

A Keynesian idea describing how confidence, sentiment, and spontaneous optimism can influence spending and investment.

Systematic patterns in data or behavior that do not fit a commonly used benchmark model.

How psychological biases, limited attention, and reference-dependent preferences shape economic choices and outcomes.

Behavioural theories of the firm explain firms as organizations with bounded rationality, routines, and multiple internal objectives rather than as single profit-maximizing calculators.

A team that applies behavioral economics to design and test small policy changes that improve decisions without removing choice.