Behavioral Insights in Experimental Economics and Decision Theory

This exam centers on the intersection of behavioral economics and experimental methods, focusing on the psychological aspects of decision-making that inform economic theory. Concepts such as bounded rationality and biases will be assessed.

Identifying behavioral patterns is pivotal in refining economic models, as it addresses discrepancies between theoretical predictions and actual human behavior. This understanding elevates practical applications in public policy and market strategy.

Candidates will be expected to articulate the influence of psychological factors on economic decisions, using examples from experimental settings to illustrate these dynamics. Critical analysis of behavioral theories is essential.

Furthermore, candidates may explore recent advancements in behavioral finance and their implications for market behavior, demonstrating how experimental economics provides insights into real-world economic phenomena.