This course serves as an introduction to behavioral economics for undergraduate students. Behavioral economics offers an interdisciplinary approach that incorporates insights from economics and other social sciences. Students will be exposed to new developments in economic theory that attempt to integrate psychological assumptions about human behavior into traditional economic models. These new developments help explain observed behavioral patterns that commonly occur but are paradoxical for traditional models. This course provides an important foundation for bridging the gap between economic theory and observations in real life. In addition, it introduces students to new models and tools that can better predict individual behavior and evaluate the effectiveness of government policies.

Prerequisites: ECON1010 or ECON1020 and ECON1030 and 60 credits