Behavioral Economics

    Research increasingly demonstrates that neoclassical models of human behavior and markets are too narrow. Our researchers are reconnecting with the social sciences, exploring psychology and human behavior in order to develop a more realstic approach to economics.

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    Is Poverty More Worrying than Inequality?

    Xavier Gabaix argues that public policies should prioritize alleviating deprivation at the bottom over narrowing the rich-poor gap  Watch the video

    Market Psychology, Animal Spirits and Reflexivity

    Neoclassical economics has abolished the role of psychology in decision making by assuming that all individuals are rational optimizers with rational expectations about future events. Read more