Friday, June 08, 2007

Behavioural Economics and Institutional Innovation

One of the great things about linking economics and psychology in real-world contexts is the potential it opens up for thinking about the role that different institutions play in choice and welfare, and ways in which institutions can be improved. Shiller, in a working paper from a couple of years back, makes the argument that behavioural economics will have a big part to play in institution design

http://cowles.econ.yale.edu/P/cd/d14b/d1499.pdf

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