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Behavioral Economics

Raj Chetty is the William A. Ackman Professor of Public Economics at Harvard University. He is also the Director of Opportunity Insights, which uses “big...

Benjamin Enke

Benjamin Enke is an Assistant Professor at Harvard's Department of Economics. Ben received his Ph.D. in Economics from Bonn in 2016. His research focuses...

Xavier Gabaix

Xavier Gabaix is Pershing Square Professor of Economics and Finance at Harvard’s economics department. He received his undergraduate degree in mathematics from the Ecole Normale Supérieure (Paris) and obtained his PhD in economics from Harvard University.... Read more about Xavier Gabaix

Jerry Green

Jerry Green is the John Leverett Professor in the University and the David A. Wells Professor of Political Economy in the Department of Economics.... Read more about Jerry Green

David Laibson

David Laibson is a member of the National Bureau of Economic Research, where he is Research Associate in the Asset Pricing, Economic Fluctuations, and Aging Working Groups.  Laibsonʼs research focuses on the topic of behavioral economics, and he is a co-leader of the Harvard University Foundations of Human Behavior Initiative. ... Read more about David Laibson

Prior to joining the Economics Department Faculty, Shengwu Li was a Junior Fellow of the Society of Fellows.

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Matthew Rabin

Matthew Rabin is the Pershing Square Professor of Behavioral Economics in the Harvard Economics Department and Harvard Business School.... Read more about Matthew Rabin

Andrei Shleifer

Andrei Shleifer has worked in the areas of comparative corporate governance, law and finance, behavioral finance, as well as institutional economics. He has published six books, including The Grabbing Hand (with Robert Vishny), and Inefficient Markets: An Introduction to Behavioral Finance , as well as over a hundred articles. In 1999, Shleifer won the John Bates Clark medal of the American Economic Association.... Read more about Andrei Shleifer

Tomasz Strzalecki

Tomasz Strzalecki's research interests are in decision theory and economic theory. He has focused on ambiguity aversion, temporal preferences, and bounded rationality.... Read more about Tomasz Strzalecki

Eric Unverzagt

Faculty Assistant to Professors  Pallais ,...

David Y. Yang is a Professor in the Department of Economics at Harvard University and Director of the Center for History and Economics at Harvard. David...

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What Is Behavioral Economics?

Understanding behavioral economics, factors that influence behavior, principals of behavioral economics.

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• Behavioral Economics

What Is Behavioral Economics? Theories, Goals, and Applications

Behavioral economics is the study of psychology as it relates to the economic decision-making processes of individuals and institutions. Behavioral economics is often related with normative economics . It draws on psychology and economics to explore why people sometimes make irrational decisions, and why and how behavior diverges from the predictions of economic models.

Key Takeaways

• Behavioral economics is the study of psychology that analyzes the economic decisions people make.
• Factors that affect behavior include bounded rationality, choice architecture, cognitive biases, discrimination, and herd mentality.
• Behavior economics is crafted around many principles including framing, heuristics, loss aversion, and the sunk-cost fallacy.
• Companies use information from behavioral economics to price their goods, craft their commercials, and package their products.

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In an ideal world, people would always make optimal decisions that provide them with the greatest benefit and satisfaction. In economics, rational choice theory states that when humans are presented with various options under the conditions of scarcity , they would choose the option that maximizes their individual satisfaction.

This theory assumes that people, given their preferences and constraints, are capable of making rational decisions by effectively weighing the costs and benefits of each option available to them. The final decision made will be the best choice for the individual. The rational person has self-control and is unmoved by emotions and external factors and, hence, knows what is best for himself. Alas, behavioral economics explains that humans are not rational and are incapable of making good decisions.

Because humans are emotional and easily distracted beings, they make decisions that are not in their self-interest . For example, according to the rational choice theory, if Charles wants to lose weight and is equipped with information about the number of calories available in each edible product, he will opt only for food products with minimal calories.

Behavioral economics states that even if Charles wants to lose weight and sets his mind on eating healthy food going forward, his end behavior will be subject to cognitive bias, emotions, and social influences. If a commercial on TV advertises a brand of ice cream at an attractive price and quotes that all human beings need 2,000 calories a day to function effectively after all, the mouth-watering ice cream image, price, and seemingly valid statistics may lead Charles to fall into the sweet temptation and fall off of the weight loss bandwagon , showing his lack of self-control.

Behavioral economics and behavioral finance are often driven by many of the same factors, though behavior finance is often more related to financial markets.

History of Behavioral Economics

Notable individuals in the study of behavioral economics include Nobel laureates Gary Becker (motives, consumer mistakes; 1992), Herbert Simon (bounded rationality; 1978), Daniel Kahneman (illusion of validity, anchoring bias; 2002), George Akerlof (procrastination; 2001), and Richard H. Thaler (nudging, 2017).

In the 18th century, Adam Smith noted that people are often overconfident with their own abilities, noting "the chance of gain is by every man more or less over-valued, and the chance of loss is by most men under-valued, and by scarce any man, who is in tolerable health and spirits, valued more than it is worth.” In this sense, Smith believed individuals are not rational with their own limitations.

More recently, behavioral economics took shape as early as the 1960's when several economists identified key biases when recalling information. This idea called availability heuristic was explained by Amos Tversky and Daniel Kahneman, and it leads individuals to irrationally interpret data. For example, shark attacks tend to happen less than people think, but headlines may make people feel otherwise. Tversky and Kahneman are also credited with developing prospect theory, how people are potentially more adverse to losses as opposed to receiving an equal win.

In 2017, Richard Thaler received the Sveriges Riksbank Price in Economics Science for his work in identifying factors that guide individuals' economic decision-making. Thaler's work included limited rationality, social preferences, lack of self-control, and individual decision-making.

There are often five factors that are cited when analyzing how individual behavior is influenced.

Bounded Rationality

Bounded rationality is the idea that individuals make decisions based on the knowledge they have. Unfortunately, this information is often limited, whether by the individual's lack of expertise of lack of available information. In regards to finance and investing, the same public information is available to everyone, though investors may not know true circumstances of what is happening with a company internally.

Choice Architecture

People can be easily manipulated, and this is often on display in the way promoters craft incentives or deals to make consumers buy certain products. Consider how a cracker display may be presented right next to the cheese aisle within a supermarket. This type of design is meant to steer a consumer into making a decision based on a choreographed demonstration often between complementary goods.

Cognitive Bias

Whether people realize it or not, everybody makes decisions that are influenced by cognitive bias . Consider the choice of choosing between two companies to invest in. Behavioral economics holds the theory that the color of the logo, the name of the CEO, or the city in which each company is headquartered in may stir up an unknown bias that yields us to choose the other company.

Discrimination

In a similar light, behavioral economics is often associated with discrimination. People perceive things, events, or other people through their own lenses , potentially discriminating towards others because they simply favor a different alternative. This does not necessarily mean the alternative is a better option, though.

Herd Mentality

Many consumer decisions are influenced by what other people are doing. Whether it is the fear of missing out or whether others want to be part of a larger collective, herd mentality is the belief that individual decisions are swayed based on what other people do, not necessarily on what is the best outcome. After all, it is much easier rooting for your favorite team even if they haven't won a championship in a while as long as other fans share your pain.

The media plays a critical part in behavioral economics. Consider how a single headline can grab your attention and make you want to either pursue or avoid a product.

The field of economics is vast. Although behavioral economics is just a subset of the field, it itself has a number of guiding principles that dictate the themes within behavioral economics. Some of the primary principles and themes are listed below.

Framing is the principle of how something is presented to an individual. This behavioral economics concept presents a cognitive bias in that an outcome may be determined based on the structure of how something has been presented. Consider how someone may feel about the two following statements about Babe Ruth, both of which are describing the same thing:

• Babe Ruth failed to get a hit in nearly two-thirds of his at-bats.
• Babe Ruth, one of the greatest baseball players of all time, hit .342 in his lifetime.

Heuristics is a complicated field, but it simply means that humans tend to make decisions using mental shortcuts as opposed to using long, rational, optimal reasoning. Most often, people latch onto something as true, even if it may no longer be the case. In this situation, it's easier for the consumer to continue what they've been doing as opposed to realizing a more beneficial situation exists.

Loss Aversion

Behavioral economics is rooted in the notion that people do not like losses. In fact, people are loss averse to the point that an economic outcome of one financial value that is negative outweighs the emotional toll of the same financial value but positive. For example, some people feel there is much stronger negative emotions associated with losing a $20 bill compared to finding a $20 bill on the ground.

Market Inefficiencies

For lack of a better phrase, the market can take advantage of behavior economics. For this reason, market inefficiencies play a crucial part in behavior economics. Consider how overpriced stocks may still lure in investors due to drops in P/E ratios . Though the trading multiple may still be abnormally high, investors may think something in the market is more reasonable simply because it is lower. For example, a stock worth $20 may be trading at $50. Should the price to $40, investors may feel this is a great opportunity.

Mental Accounting

Consumers and investors may change their spending and trading tendencies based on circumstances. Though this is fair, often times it is illogical and shapes many aspects of behavioral economics. For example, after receiving one's annual bonus, an investor may choose to invest in riskier stocks. This mental accounting exercise led an investor to make a decision based on their circumstances, not their long-term strategy.

Sunk-Cost Fallacy

The sunk-cost fallacy is the emotional attachment to costs that have been incurred in the past. Consumers and investors tend to have a harder time "letting go" of failed investments or committed capital. Consider a failed stock that was purchased at $100/share that is now worth $15/share. An investor may not feel compelled to buy in at $15/share because they think the company is not worth that. However, they are unwilling to sell their shares bought at $100/share due to an emotional attachment to that committed capital.

When performing a cost/benefit analysis, sunk costs are ignored entirely. That is because the price has already been paid and, if it can not be recovered, it has no financial bearing on the future outcome of a decision.

Applications of Behavioral Economics

Financial markets.

One field in which behavioral economics can be applied to is behavioral finance, which seeks to explain why investors make rash decisions when trading in the capital markets . Much like how poker professionals not only study the mathematics and odds of poker, they also attempt to capitalize on the irrational nature of other players. The same can be said of financial markets.

Game Theory

When a decision made leads to error, heuristics can lead to cognitive bias. Behavioral game theory , an emergent class of game theory, can also be applied to behavioral economics as game theory runs experiments and analyzes people’s decisions to make irrational choices. This concept attempts to override illogical behavior to predict consumption outcomes.

Pricing Strategies

Companies are increasingly incorporating behavioral economics to increase sales of their products. In 2007, the price of the 8GB iPhone was introduced for $600 and quickly reduced to $400. By introducing the phone at a higher price and bringing it down to $400, consumers believed they were getting a pretty good deal, even if the true value of the product was only $400.

Product Packaging and Distribution

Consider a soap manufacturer who produces the same soap but markets them in two different packages to appeal to multiple target groups. One package advertises the soap for all soap users, the other for consumers with sensitive skin. The latter target would not have purchased the product if the package did not specify that the soap was for sensitive skin. They opt for the soap with the sensitive skin label even though it’s the exact same product in the general package.

What Do Behavioral Economists Do?

Behavioral economists work to understand what consumers do and why they make the choices they make. Such economists also assist markets in helping consumers make those decisions. Behavioral economists may work for the government to shape public policy to protect consumers. Other times, they may work for private companies and assist in fostering sales growth.

What Is the Goal of Behavioral Economics?

The goal of behavioral economics is to understand why humans make the decisions they do . There are usually outcomes that are the best for people and many times, people do not choose that outcome. Behavioral economics is an incredibly complex and sometimes inexplainable science of why people do things and why they choose to not be rational.

What Is the Difference Between Behavioral Economics and Psycology?

Both behavioral economics and psychology refer to the dispositions, emotions, and decision-making of individuals. Behavior economics is a much more niche field that studies the financial decision-making of an individual, while psychology may cover any aspect of human rationality.

What Is the Downside to Behavioral Economics?

One downside to behavioral economics is that it can be used to deceive or manipulate people and their decision-making. Though people are often not rational, this irrationality may be predictable. Companies can choose to exploit this by packaging their products in a certain way, pricing their goods at specific levels, or customizing their marketing to attract certain markets.

Behavioral economics is a field of study aimed at understanding why people make economically irrational decisions.

Rational choice theory holds that consumers make choices that maximize their utility. In reality, people can be swayed or distracted from doing so. Behavioral economics attempts to understand how and why this happens.

Journal of Economic Perspectives. " Adam Smith, Behavioral Economist ."

Science Magazine. " The Framing of Decisions and the Psychology of Choice. "

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Top 99 Behavioral Economics Dissertation Topics | Easy Writing Tips

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What is a Behavioral Economics Dissertation?

A Behavioral Economics Dissertation is a research paper that looks at how people make decisions. It blends economics with psychology to understand why people act the way they do when it comes to money, work, and life choices.

This type of dissertation digs deep into human behavior and seeks to answer questions like why we sometimes make irrational decisions or why we might save money in one situation and spend it in another. The goal is to uncover the reasons behind these actions and offer insights that could help improve economic policies or business strategies.

Why are Behavioral Economics Dissertation Topics Important?

Behavioral Economics is a growing field, and understanding it is key for anyone studying economics, psychology, or business. Choosing a good topic for your dissertation is important because it will guide your research and help you contribute to this exciting area of study.

A well-chosen topic can make your dissertation stand out and even lead to new discoveries. It can also show your ability to think critically and conduct in-depth research. Behavioral Economics topics are crucial because they can influence everything from public policy to marketing strategies. By exploring these topics, you can help others understand how to make better choices, both on a personal and societal level.

Writing Tips for Behavioral Economics Dissertation

• Choose a Relevant Topic : Start with a topic that interests you and is relevant to current issues in Behavioral Economics. This will keep you motivated and engaged.
• Do Thorough Research : Before you start writing, spend time researching your topic. Read books, academic journals, and articles to get a good understanding of the subject.
• Create a Clear Outline : Organize your ideas by creating an outline. This will help you structure your dissertation and ensure you cover all important points.
• Use Simple Language : Write in a way that is easy to understand. Avoid jargon and complicated words. Your goal is to communicate your ideas clearly.
• Support Your Arguments : Use data and evidence to back up your points. This will make your dissertation stronger and more convincing.
• Edit and Proofread : Always revise your work. Check for grammar mistakes and ensure your ideas flow well from one section to the next.

Check out our related posts for economics dissertation topics , Psychology dissertation topics , and accounting dissertation topics .

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Best Behavioral economics dissertation topics for college students

Behavioral economics dissertation topics focus on the individuals that work within the economies of the world. It is impossible to go on without the involvement of individuals. Therefore, behavioral economics thesis topics have strong connections with the field of psychology as well.

The field of behavioral economics studies and describes  economic decision-making . According to its theories, actual human behavior is less rational, stable, and selfish than traditional normative theory suggests.

Behavioral economics subjects are a typical area of study here is the list of topics in Behavioral economics dissertation topics have been enlisted below:

• How Cognitive Biases Affect Financial Decision-Making
• The Role of Social Norms in Economic Behavior
• Behavioral Economics in Online Shopping: A Study of Consumer Choices
• Nudging in Public Policy: Effective or Overrated?
• The Impact of Behavioral Economics on Marketing Strategies
• Risk Perception and Decision-Making Under Uncertainty
• The Psychology of Saving: Why Do Some People Save More Than Others?
• The Effect of Anchoring on Investment Choices
• Behavioral Economics and Environmental Conservation: How to Encourage Green Choices
• Understanding Procrastination Through Behavioral Economics
• The Influence of Peer Pressure on Economic Decisions
• How Behavioral Economics Explains the Gender Pay Gap
• The Role of Emotions in Economic Decision-Making
• The Effect of Loss Aversion on Consumer Behavior
• How Behavioral Economics Can Improve Health Outcomes
• The Impact of Framing on Consumer Choices
• The Role of Behavioral Economics in Reducing Poverty
• Why People Donate: A Behavioral Economics Perspective
• The Effect of Financial Education on Economic Behavior
• Behavioral Economics and the Stock Market: Predicting Bubbles
• How Social Media Influences Consumer Behavior
• The Psychology of Debt: Why People Borrow
• Behavioral Economics and Retirement Planning
• The Impact of Defaults on Decision-Making
• How Behavioral Economics Can Improve Public Transportation
• The Role of Behavioral Economics in Education Policy
• Why Do People Gamble? A Behavioral Economics Approach
• How Behavioral Economics Can Reduce Food Waste
• The Effect of Incentives on Work Performance
• Understanding Charitable Giving Through Behavioral Economics
• The Role of Behavioral Economics in Tax Compliance
• How Behavioral Economics Explains Impulse Buying
• The Impact of Behavioral Economics on Housing Markets
• Behavioral Economics and Corporate Social Responsibility
• The Effect of Mental Accounting on Spending Habits
• How Behavioral Economics Can Improve Financial Literacy
• The Role of Behavioral Economics in Sports Betting
• The Influence of Behavioral Economics on Healthcare Choices
• How Behavioral Economics Can Help Reduce Crime
• The Effect of Present Bias on Long-Term Planning
• Studying the relationship between psychology and economics in the form of behavioral economics.
• The role played by behavioral economics in understanding the domain of inflation targeting: a systematic analysis.
• Correlational analysis of behavioral economics, feminist economics, and gender economics: a descriptive analysis.
• Behavioral economics: an interdisciplinary approach in essence?
• Historical analysis of behavioral economics: connecting the past with the present and the future.
• Comparative analysis of rational and irrational approaches towards behavioral economics of death.
• Regulatory policy and behavioral economics: understanding the changing relationship.
• Correlational analysis of behavioral economics, sports, and positive youth development: focus on X country.
• Behavioral economics and poverty: a descriptive analysis.
• Behavioral economics and education focus on potential opportunities and challenges.
• Development of money management strategies for substance abusers: a behavioral economics perspective.
• Analyzing behavioral economics data: a review of empirical evidence.
• Is childhood vaccination really required? A behavioral economics perspective.
• Increasing savings of the employees: focus on using a behavioral economics perspective in the organizations.
• Structural behavioral economics: a review of empirical evidence.
• Studying the relationship between finance and behavioral economics: focus on subjective probability.
• Correlational analysis of behavioral economics, public policy, rational inefficiencies, and power: focus on X country.
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• Studying the relationship between behavioral economics and the insurance industry: focus on potential challenges and opportunities.
• Behavioral economics and the law: focus on X country.
• Studying the relationship between tax policy and behavioral economics of X country: a descriptive approach.
• Effects of behavioral economics on improving the performance of community childcare centers in X country.
• Effects of behavioral economics on the end-of-life care domain: focus on the promotion of advanced directives.
• Ethics in behavioral economics: a review of empirical evidence.
• Investigating the relationship between behavioral economics and the psychology of incentives: a quantitative study.
• The role played by decision-making in the field of behavioral economics: a systematic analysis.
• How are the fields of health economics and behavioral economics connected? An inquiry.
• Data-driven marketing and behavioral economics: a descriptive study.
• Studying the relationship between economic incentive and provider behavior: a quantitative analysis.
• Environmental policy and behavioral economics: focus on x country.
• Applying the principles of behavioral economics to the understanding of privacy: a review of empirical evidence.
• Investigating the effects of behavioral economics on consumer contracts.
• Correlational analysis of behavioral economics, environmental protection, and climate change policy: a qualitative study.
• Correlational analysis of behavioral economics, psychology of firm behavior, and psychology of consumer behavior.
• Studying the relationship between retirement savings crisis and behavioral economics: a quantitative analysis.
• Behavioral economics and macroeconomic models: a correlational analysis.
• Behavioral Economics and Climate Change: Encouraging Sustainable Behavior
• The Impact of Social Proof on Consumer Choices
• How Behavioral Economics Can Improve Voting Behavior
• The Role of Behavioral Economics in Preventing Fraud
• The Psychology of Pricing: How Consumers Perceive Value
• How Behavioral Economics Can Improve Workplace Productivity
• The Effect of Overconfidence on Investment Decisions
• Behavioral Economics and Addiction: Understanding the Cycle
• The Role of Behavioral Economics in Insurance Markets
• How Behavioral Economics Explains the Popularity of Subscription Services
• The Impact of Behavioral Economics on Tourism Choices
• Behavioral Economics and Urban Planning : Designing Better Cities
• The Effect of Delayed Gratification on Economic Success
• How Behavioral Economics Can Reduce Traffic Congestion
• The Role of Behavioral Economics in Promoting Healthy Eating
• The Influence of Behavioral Economics on Advertising Strategies
• How Behavioral Economics Can Improve Recycling Rates
• The Effect of Behavioral Economics on Workplace Safety
• Behavioral Economics and the Sharing Economy: A New Perspective
• The Role of Behavioral Economics in Online Privacy Choices
• How Behavioral Economics Can Improve Customer Satisfaction
• The Impact of Behavioral Economics on Fashion Trends
• Behavioral Economics and Financial Technology: The Future of Banking
• The Effect of Choice Overload on Consumer Decisions
• How Behavioral Economics Explains the Success of Loyalty Programs
• The Role of Behavioral Economics in Reducing Stress
• The Influence of Behavioral Economics on Parenting Decisions
• How Behavioral Economics Can Improve Credit Scoring Models
• The Effect of Behavioral Economics on Gift-Giving Behavior
• Behavioral Economics and the Gig Economy: Understanding Worker Motivation
• The Role of Behavioral Economics in Crisis Management
• How Behavioral Economics Can Improve Mental Health Treatment
• The Impact of Behavioral Economics on Corporate Governance
• Behavioral Economics and Entrepreneurship: Understanding Risk-Taking
• The Effect of Behavioral Economics on E-commerce Growth
• How Behavioral Economics Explains the Popularity of Social Media
• The Role of Behavioral Economics in Conflict Resolution
• Behavioral Economics and International Trade: A New Approach
• The Influence of Behavioral Economics on Family Financial Planning
• How Behavioral Economics Can Improve Online Education
• The Effect of Behavioral Economics on Public Speaking
• Behavioral Economics and Cultural Differences: Understanding Global Markets
• The Role of Behavioral Economics in Disaster Preparedness
• How Behavioral Economics Can Improve Employee Retention
• The Impact of Behavioral Economics on Real Estate Investment
• Behavioral Economics and Philanthropy: Understanding Donor Behavior
• The Effect of Behavioral Economics on Personal Finance Management
• How Behavioral Economics Explains the Popularity of Streaming Services
• The Role of Behavioral Economics in Reducing Energy Consumption
• Behavioral Economics and Social Justice: A New Perspective
• The Influence of Behavioral Economics on Political Campaigns
• How Behavioral Economics Can Improve Job Satisfaction
• The Effect of Behavioral Economics on Brand Loyalty
• Behavioral Economics and Risk Management: A New Approach
• The Role of Behavioral Economics in Emergency Planning
• How Behavioral Economics Can Improve Customer Retention
• The Impact of Behavioral Economics on Small Business Growth
• Behavioral Economics and the Arts: Understanding Consumer Choices
• The Effect of Behavioral Economics on Negotiation Strategies

These are the best Behavioral economics dissertation topics if you are still looking for some different Behavioral economics dissertation topics fill out the form below and get our topics mini proposal service for Behavioral economics dissertation topics according to your requirements .

Behavioral Economics is a fascinating field that blends economics and psychology to explain why people make the choices they do. Choosing the right dissertation topic in this area is crucial as it will guide your research and help you make a meaningful contribution. With the right approach, you can write a dissertation that is both insightful and impactful. Use the tips above to help you write a strong paper, and consider the list of topics to find one that inspires you. Behavioral Economics is all about understanding people, and your dissertation could help others make better decisions in their lives.

1. What makes a good Behavioral Economics Dissertation Topic?

• A good topic should be relevant, interesting, and specific enough to allow for in-depth research. It should also address current issues in the field.

2. How do I choose a topic for my Behavioral Economics Dissertation?

• Start by thinking about what interests you most in Behavioral Economics. Then, do some research to see what topics are being discussed in academic journals and articles.

3. Can I use real-world examples in my dissertation?

• Yes! Using real-world examples can help make your dissertation more relatable and engaging.

4. How long should my Behavioral Economics Dissertation be?

• The length will depend on your school’s requirements, but most dissertations are between 10,000 and 20,000 words. Make sure to check with your advisor for specific guidelines.

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134 Economics Thesis Topics: Ideas for Outstanding Writing

Writing a thesis is not an easy task. For most of the students, it can be even intimidating, especially when you do not know where to start your research.

Here, we have provided an economics thesis topics list. After all, everyone knows that choosing the right idea is crucial when writing an academic paper. In economics, it can combine history, math, social studies, politics, and numerous other subjects. You should also have solid foundations and a sound factual basis for a thesis. Without these elements, you won’t be able to master your research paper.

The issue is:

It is not always clear what could be seen as an excellent economics thesis topic. Our experts can assist you with this challenge. This list contains some outstanding examples to get you started.

• ⭐ Thesis in Economics
• 🔥 Supreme Thesis Topics
• 👍 Bachelor’s Thesis
• 😲 Master’s Thesis

📊 Microeconomics

📈 macroeconomics.

• 🤔 Developmental
• 👨‍💼 Behavioral
• 💼 Financial
• 🌱 Agricultural
• 🤝‍ Sociology
• 📚 Ph.D. Topics
• 📝 How to Pick a Topic

⭐ What Does a Thesis in Economics Look Like?

A good thesis in economics is a blend between an empirical paper and a theoretical one. One of the essential steps in choosing a topic in economics is to decide which one you will write.

You may write, research, analyze statistical data and other information. Or build and study a specific economic model.

Or why not both!

Here are some questions you can ask when deciding what topic to choose:

• What has already been written on this topic?
• What economic variables will my paper study?
• Where should I look for the data?
• What econometrics techniques should I use?
• What type of model will I study?

The best way to understand what type of research you have to do is to write a thesis proposal. You will most probably be required to submit it anyway. Your thesis supervisor will examine your ideas, methods, list of secondary and primary sources. At some universities, the proposal will be graded.

After you get the initial feedback, you will have a clear idea of what to adjust before writing your thesis. Only then, you’ll be able to start.

🔥 Supreme Economics Thesis Topics List

• Fast fashion in India.
• The UK housing prices.
• Brexit and European trade.
• Behavioral economics.
• Healthcare macroeconomics.
• COVID-19’s economic impact.
• Global gender wage gap.
• Commodity dependence in Africa.
• International trade – developing countries.
• Climate change and business development.

👍 Economics Bachelor’s Thesis Topics

At the U.S. Universities, an undergraduate thesis is very uncommon. However, it depends on the Department Policy.

The biggest challenge with the Bachelor’s Thesis in economics concerns its originality. Even though you are not required to conduct entirely unique research, you have to lack redundant ideas.

You can easily avoid making this mistake by simply choosing one of these topics. Also, consider visiting IvyPanda essays database. It’s a perfect palce to conduct a brainstorming session and come up with fresh ideas for a paper, as well as get tons of inspiration.

• The impact of the oil industry on the economic development of Nigeria. The oil industry is vital for the economic development of Nigeria. In this thesis, students can discuss the notion of the resource curse. Analyze the reasons why general people are not benefiting from the oil industry. Why did it produce very little change in the social and economic growth of the country?
• Sports Marketing and Advertising: the impact it has on the consumers.
• Economic opportunities and challenges of investing in Kenya .
• Economic Development in the Tourism Industry in Africa. Since the early 1990s, tourism significantly contributed to the economic growth of African countries. In this thesis, students can talk about the characteristics of the tourist sector in Africa. Or elaborate on specific countries and how their national development plans look like.
• Globalization and its significance to business worldwide .
• Economic risks connected to investing in Turkey .
• The decline in employment rates as the biggest American economy challenge .
• The economics of alcohol abuse problems. In this thesis, students can develop several essential issues. First, they can examine how poverty is connected to alcohol abuse. Second, they can see the link between alcohol consumption and productivity. To sum up, students can elaborate on the economic costs of alcohol abuse.
• Causes and solutions for unemployment in Great Britain.
• Parallel perspective on Global Economic Order: China and America. This thesis can bring a comparative analysis of the economies to a new level. China and The US are the world’s two largest economies. These two countries have a significant impact on the global economic order. So, looking at the set of institutions, policies, rules can be constructive.
• The new international economic order after COVID-19
• Financial stability of the banking sector in China.
• New Electronic Payment Services in Russia.
• The influence of culture on different entrepreneurial behaviors.
• The impact of natural cultural practices on entrepreneurial activity.
• The relationships between national culture and individual behavior.
• The main reasons for salary inequalities in different parts of the U.S.

😲 Economics Master’s Thesis Topics

Student life can be fascinating, but it comes with its challenges. One of which is selecting your Master’s thesis topic.

Here is a list of topics for a Master’s thesis in economics. Are you pursuing MPhil in Economics and writing a thesis? Use the following ideas as an inspiration for that. They can also be helpful if you are working on a Master’s thesis in financial economics.

• The impact of visual aid in teaching home economics.
• The effect of income changes in consumer behaviors in America.
• Forces behind socio-economic inequalities in the United States. This thesis can explore three critical factors for socio-economic differences in the United States. In the past 30 years, social disparities increased in the United States. Some of the main reasons are technology, trade, and institutions.
• The relationships between economic growth and international development.
• Technological innovations and their influence on green and environmental products.
• The economics of non-solar renewable energy .

• The economic consequences of terrorism . Terrorism not only takes away lives and destroys property but also widely affects the economy. It creates uncertainty in the market, increases insurance claims, slows down investment projects, and tourism. This thesis can address all of the ways in which terrorism can affect economies.
• Corporate Social Responsibility (CSR) implementation in the Oil and Gas Industry in Africa.
• Use of incentives in behavioral economics.
• Economic opportunities and challenges of sustainable communities .
• Economics of nuclear power plants.
• Aid and financial help for emerging markets. This topic is very versatile. Students can look at both the positive and the adverse effects that funding has on the development. There are plenty of excellent examples. Besides, some theories call international help a form of neocolonialism.
• Multinational firms impact on economic growth in America .
• The effect of natural disasters on economic development in Asia.
• The influence of globalization on emerging markets and economic development.

📑 More Economics Thesis Topics: Theme

For some students, it makes more sense to center their search around a certain subject. Sometimes you have an econ area that interests you. You may have an idea about what you want to write, but you did not decide what it will be.

If that’s the case with you, then these economics thesis topics ideas are for you.

• An analysis of the energy market in Russia.
• The impact of game theory on economic development.
• The connection between minimum wage and market equilibrium.
• Gender differences in the labor market in the United States. This topic can shed light on gender differences in the labor market in the United States. In the past years, the overall inequality in labor in the markets decreased. However, there is still a lot of work that can be done.
• Economic reasons that influence the prices of oil .
• Relationship between the Lorenz curve and the Gini coefficient.
• Challenges of small businesses in the market economy.
• The changes in oil prices: causes and solutions . Universal economic principles do not always apply to the sale and purchase of the oil. The same happens with its cost. In the thesis, talk about what affects the prices. What are the solutions that can be implemented?
• The economic analysis of the impact of immigration on the American economy.

• Economic inequality as a result of globalization . Economic inequality becomes even more apparent on the global level. There is a common belief that globalization is the cause of that. Discuss what can be the solutions to these problems. This topic is vital to minimize the gap between the rich and the poor.
• The economic explanation of political dishonesty .
• Effect of Increasing Interest rates costs in Africa .
• The connection between game theory and microeconomics.
• Marketing uses in microeconomics.
• Financial liability in human-made environmental disasters.
• Banks and their role in the economy. Banks are crucial elements of any economy, and this topic covers why. You can explain how banks allow the goods and services to be exchanged. Talk about why banks are so essential for economic growth and stability.
• Inflation in the US and ways to reduce its impact.
• The connection between politics and economics.
• Income Dynamics and demographic economics.
• US Market Liquidity and macroeconomics.
• Macroeconomics and self-correction of the economy .
• The American economy, monetary policy, and monopolies .
• The importance of control in macroeconomics. One of the central topics in macroeconomics is grouped around the issue of control. It is quite reasonable that control over money and resources should become a topic of discussion.
• Analysis of Africa’s macroeconomics and its performance.
• Economics of education in developing markets.
• Problems and possible solutions for Japan macroeconomics .
• Comparative analysis of British macroeconomics concerning the US .
• Public policies and socio-economic disparities.
• The world problems through macroeconomic analysis. Indeed, macroeconomics is very complicated. There are many influences, details, and intricacies in it. However, it allows economists to use this complex set of tools to examine the world’s leading problems today.

• The connection between employment interest and money.

🤔 Development Economics

• Economics of development . This topic is very rich in content. First, explain what it is. Then pay particular attention to domestic and international policies that affect development, income distribution, and economic growth.
• The relation between development and incentive for migration.
• The impact of natural disasters on the economy and political stability of emerging markets.
• The economic consequences of population growth in developing countries.
• The role of industrialization in developing countries . The industrialization has been connected with the development. It promotes capital formation and catalyzes economic growth in emerging markets. In this thesis, you can talk about this correlation.
• Latin American economic development.
• Gender inequality and socio-economic development .
• Problems of tax and taxation in connection with economic growth.
• The economic impact of terrorism on developing markets.
• Religious decline as a key to economic development. Not everyone knows, but a lot of research has been done in the past years on the topic. It argues that decreased religious activity is connected with increased economic growth. This topic is quite controversial. Students who decide to write about it should be extra careful and polite.

👨‍💼 Behavioral Economics

• Risk Preferences in Rural South Africa.
• Behavioral Economics and Finance .
• Applied behavioral economics in marketing strategies. If you want to focus your attention on marketing, this topic is for you. Behavioral economics provides a peculiar lens to look at marketing strategies. It allows marketers to identify common behaviors and adapt their marketing strategies.
• The impact of behavioral finance on investment decisions.
• Behavioral Economics in Child Nutrition Programs in North Texas.
• Guidelines for Behavioral Economics in Healthcare Sector.
• Cognitive and behavioral theories in economics .
• Cross-cultural consumer behavior and marketing communication. Consumers are not only affected by personal characteristics, but also by the culture they are living in. This topic focuses on the extent it should determine marketing strategy and communication.
• Behavior implications of wealth and inequality.

• Optimism and pessimism for future behavior.

💼 Financial Economics

• Financial Economics for Infrastructure and Fiscal Policy .
• The use of the economic concept of human capital. Students can focus on the dichotomy between human and nonhuman capital. Many economists believe that human capital is the most crucial of all. Some approach this issue differently. Therefore, students should do their research and find where they stand on this issue.
• The analysis of the global financial crisis of 2020s. Share your thoughts, predictions, ideas. Analyze the economic situation that affects almost everyone in the world. This thesis topic will be fresh and original. It can help to start a good and fruitful conversation.
• The big data economic challenges for Volvo car.
• The connection between finance, economics, and accounting.
• Financial economics: Banks competition in the UK .
• Risk-Taking by mutual funds as a response to incentives.
• Managerial economics and financial accounting as a basis for business decisions.
• Stock market overreaction.

🌱 Agricultural Economics

• Agricultural economics and agribusiness.
• The vulnerability of agricultural business in African countries.
• Agricultural economics and environmental considerations of biofuels .
• Farmer’s contribution to agricultural social capital.
• Agricultural and resource economics. Agricultural and resource economics plays a huge role in development. They are subdivided into four main characteristics which in this topic, students can talk about: – mineral and energy resources; – soil resources, water resources; – biological resources. One or even all of them can be a focus of the thesis.
• Water as an economic good in irrigated agriculture.
• Agriculture in the economic development of Iran.
• The US Agricultural Food Policy and Production .
• Pesticides usage on agricultural products in California.

• An analysis of economic efficiency in agriculture. A lot of research has been done on the question of economic efficiency in agriculture. However, it does not mean there is no place for your study. You have to read a lot of secondary sources to see where your arguments can fit.

🤝‍Economic Sociology

• Theory, approach, and method in economics sociology.
• Economic sociology of capitalism. While economists believe in the positive effect capitalism has on the economy, the social effect is quite different. The “economic” part of the issue has been studied a lot. However, the sociology of it has been not. This thesis can be very intriguing to read.
• Political Economy and Economic Sociology.
• Gender and economic sociology .
• Progress, sociology, and economics.
• Data analysis in economics, sociology, environment .
• Economic sociology as a way to understand the human mind.
• Economic sociology of money.
• Economics, sociology, and psychology of security.
• Major principles of economic sociology. In the past decade, economic sociology became an increasingly popular field. Mainly due to it giving a new view on economics, human mind, and behavior. Besides, it explores relationships between politics, law, culture, and gender.

📚 The List of Ph.D. Topics in Economics

If you decide to go to grad school to do your Masters, you will likely end up getting a Ph.D. as well. So, with this plan in mind, think about a field that interests you enough during your Masters. Working with the same topic for both graduate degrees is easier and more effective.

This list of Ph.D. Topics in Economics can help you identify the areas you can work on.

• Occupational injuries in Pakistan and its effect on the economy. Injuries are the leading cause of the global burden of disability. Globally, Pakistan was ranked 9th populated country with a large number of unskilled workers. In this dissertation, consider the link between occupational injuries and their effects on the economy.
• The study of the Philippines’ economic development.

• Financial derivatives and climate change .
• Econometric Analysis of Financial Markets.
• Islamic Banking and Financial Markets .
• Health economics and policy in the UK.
• Health insurance: rationale and economic justification. In this dissertation, students can find different ways to explain and justify health insurance. Starting to philosophical to purely economic grounds. In the past years, there was a lot of discussion regarding the healthcare system for all. What are some of the economic benefits of that?
• Colombian economy, economic growth, and inequality.
• Benefits of mergers and acquisitions in agribusiness.
• Methods to measure financial risks when investing in Africa.
• The significance of financial economics in understanding the relationship between a country’s GDP and NDP.
• Network effects in cryptocurrency. Cryptocurrencies are not new anymore. However, it is still an original subject for a dissertation. Students can decide to choose several crypto coins and evaluate the importance of the network effect. This effect is particularly significant for Bitcoin. Explain why.
• The comparison of the Chinese growth model with the American growth model.
• An economic justification versus political expediency.
• Pollution Externalities Role in Management Economics .

📝 How to Select an Economics Thesis Topic

As your academic journey is coming to an end, it’s time to pick the right topic for your thesis. The whole academic life you were preparing to undertake this challenge.

Here is the list of six points that will help you to select an economics thesis topic:

• Make sure it is something you are genuinely interested in. It is incredibly challenging to write something engaging if you are not interested in the topic. So, choose wisely and chose what excites you.
• Draw inspiration from the previous student’s projects. A great place to start is by looking at what the previous students wrote. You can find some fresh ideas and a general direction.
• Ask your thesis advisor for his feedback. Most probably, your thesis advisor supervised many students before. They can be a great help too because they know how to assess papers. Before meeting with your professor, do some basic research, and understand what topic is about.
• Be original, but not too much. You do not want to spend your time writing about a project that many people wrote about. Your readers will not be interested in reading it, but your professors as well. However, make sure you do not pick anything too obscure. It will leave you with no secondary sources.
• Choose a narrow and specific topic. Not only will it allow you to be more original, but also to master a topic. When the issue is too broad, there is just too much information to cover in one thesis.
• Go interdisciplinary. If you find yourself interested in history, philosophy, or any other related topic, it can help you write an exceptional thesis in economics. Most of your peers may work on pure economics. Then, the interdisciplinary approach can help you to stand out among them.

Thank you for reading the article to the end! We hope this list of economics thesis topics ideas could help you to gather your thoughts and get inspired. Share it with those who may find it useful. Let us know what you think about it in the comment section below.

🔗 References

• Economics Thesis Topics List: Seminars Only
• How To Pick A Topic For Your Economics Research Project Or Master’s Thesis: INOMICS, The Site for Economists
• What Do Theses and Dissertations Look Like: KU Writing Center, the University of Kansas
• Writing Economics: Robert Neugeboren with Mireille Jacobson, University of Harvard
• Economics Ph.D. Theses: Department of Economics, University of Sussex Business School, IDEAS_RePEc
• World Economic Situation and Prospects 2018: United Nations
• Undergraduate Honors Theses: Department of Economics, University of California, Berkeley
• Economics Department Dissertations Collection: Economics Department, University of Massachusetts Amherst
• Topics for Master Theses: Department of Economics, NHH, Norwegian School of Economics
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The dilemma I faced in getting Thesis proposal for my M Phil programme is taken away. Your article would be a useful guide to many more students.Thank you for your guidance.

Thanks for the feedback, John! Your opinion is very important for us!

I wants it for msc thesis

These are very helpful and concise research topics which I have spent days surfing the internet to get all this while. Thanks for making research life experience easier for me. Keep this good work up.

Thank you, Idris!

Glad to hear that! Thank you for your feedback, Idris!

Excellent research

For research

A very well written, clear and easy-to-read article. It was highly helpful. Thank you!

Thanks for your kind words! We look forward to seeing you again!

Behavioral Economics in Context: Applications for Development, Inequality & Discrimination, Finance, and Environment

By Anastasia C. Wilson

This module critically examines the assumptions of rationality in the neoclassical model and presents an in-depth discussion of behavioral economics and its applications to fields, such as economic development, social and economic inequality, financial instability, and climate change and environmental sustainability. A basic toolkit of concepts, insights and methods from behavioral and experimental economics are presented. The module explores how behavioral insights can be used to design policy solutions that account for economic, social and psychological aspects of everyday life.

Download Teaching Module

What the Founding of Behavioral Economics Teaches Us About How to Create a Meaningful Movement

It was a sunny fall day in London in 2013 when George Loewenstein and I walked up Fleet Street to St. Paul’s Cathedral. We turned onto a lane toward the Millennium Bridge. We were meeting in London to continue our work on a research project; our walk was a chance to take a break and find lunch. Gradually, our conversation shifted from our work, and I found myself curious about something else. As we crossed the Thames, I asked George, “What do you think are your most important contributions to the field?”

He mentioned his work on short-term and long-term choices, how our preferences are inconsistent over time, and the role of emotions in decision-making. He also mentioned my favorite study of his, which helps explain why you can’t find a cab on a rainy day in New York City. But then, as we reached the south end of the bridge with the afternoon sun shining in our eyes, George paused and said something unexpected: “One important thing was being at the table when we decided to call the field behavioral economics.”

Although I’d read lots of tales about the early days of Daniel Kahneman, Amos Tversky, Richard Thaler, and others, I hadn’t considered that at some point the founders of this new line of research had to shift their focus from deep, perennial questions of human nature to the more mundane question of what to call this new thing they were working on. His comment sparked curiosity about what it would have been like to be at the table for that discussion, and, more broadly, about how it was that the field of behavioral economics came to be.

Eleven years later, I got to find out. In 2023, I endeavored with Kurt Nelson (with whom I cohost the podcast Behavioral Grooves ) and Andy Luttrell (psychology professor and host of the Opinion Science podcast) to tell the story of how behavioral economics took shape. The result was a five-part series called They Thought We Were Ridiculous . Featuring 20 interviews with the people who helped shape the field, the series traces how they came together to give the modern world a new perspective on how we make decisions. (And, through those interviews, I was able to find out more about the conversation that led to the name behavioral economics; more on that in a moment.)

They Thought We Were Ridiculous also focuses on the challenges inherent in building and sustaining a movement that runs counter to the status quo. These early leaders demonstrated the transformative potential of a small group of dedicated individuals united in their quest to challenge the very foundations of their training.

The widespread influence of behavioral economics today might make its progress seem inevitable. However, this view overlooks the field’s complex journey. Our series not only chronicles the development of behavioral economics but allowed us to explore the lifecycle of ideas—why new concepts emerge, evolve, and make a lasting impact or fade away—and broader perspectives on innovation and intellectual progress.

Since we released the podcast, and as all the hours of interviews and research coalesce in my mind, I’ve been reflecting more on what lessons we can take from those who started the field several decades ago. What are the lessons about starting something new, or pursuing something that runs counter to the prevailing wisdom and norms?

In this article, I want to share four lessons. I think they can help us all improve the ways we start up, get unstuck, collaborate, preserve, and find our own luck.

Teamwork Makes the Dreams Work

Important endeavors rely on the raw power of working with others. The early pioneers of behavioral economics did not operate in solitude. Rather, they became friends—good friends—and formed a close-knit network of intellectually curious scholars. They fought for opportunities to spend time with one another, intentionally designed studies to collaborate on, and in some cases, wrote every word of their research papers together.

Eric Wanner, who oversaw grants and organized programs through the Russell Sage Foundation, understood the value of this togetherness. He organized, with the help of Thaler and Kahneman, “summer camps” to formalize time for graduate students to live together and learn from the field’s emerging leaders. There were very few rules, but dining together was one of them. Wanner believed that if all the campers were required to attend lunch, he could increase conversations, encourage collaboration, and keep campers from wandering off midday. Wanner noted, “I was a big believer in lunch.” He took pains to make lunch desirable, and “good things came out,” he recalled.

As one of the institute’s first students, Sendhil Mullainathan, now a professor of computation and behavioral science at the University of Chicago, put it, “The summer school worked because the shared unit became all of the pockets of knowledge that different people had in different fields that we didn’t know.”

Innovation thrives when you can bump up against people who share your passions but have different bits of knowledge. And the social aspect fuels individual and collective curiosity. Not only does it help progress, it also makes the work more enjoyable. The lesson is unequivocal: to effect change, one must not endeavor alone.

The Magic of Starting Small

Grand initiatives needn’t start with a grand theory. The pioneers of behavioral economics did not embark on their journey with a grandiose vision of overhauling neoclassical economics. Instead, they began by meticulously noting peculiarities in human behavior that defied explanation under the prevailing models of the time.

Thaler, for instance, documented random observations on a blackboard in his office. Unencumbered by a preconceived theory, he was driven by curiosity about what he witnessed, and he asked questions. Why were dinner party guests happy to overeat the cashews before dinner? Why was it okay to skip the basketball game in foul weather when the tickets were a gift, but not skip it if we bought them? Why would consumers travel across town to save $50 on a toaster, but not make the same trek to save $50 on a television? As he put it, “I had this long list of funny things people did, but it wasn’t clear what to do with it because they were just stories.”

About the same time, Kahneman and Tversky were developing single questions to test people’s cognitive biases. A question such as, “Which graduate program is Tom W most likely getting his degree in?” revealed that the vast majority of respondents failed to pay attention to base rates, but as Kahneman reflected, “We were not thinking of changing economic theory.”

But change it they did. By collecting many threads of specific observations, they began to weave a robust body of knowledge that birthed novel theories and powerful models.

We need to cultivate a keen sense of curiosity and pay attention to the world around us. Resist the temptation to have all the answers upfront. One thing will lead to another. As you amass more data and insights, look for connections, rhythms, and patterns. With more and more data, you can begin to develop bigger, more comprehensive theories. It just takes time.

Working from the Inside

Early behavioral economists didn’t have it easy. On the one hand, they faced criticism, opposition, and skepticism from powerful economists whose turf was being challenged. On the other, they faced snide reservations from psychologists who felt their work was being repackaged.

Thaler spoke of resistance he encountered with old-school economists. “The guy who would be viewed as my main adversary is Eugene Fama [and] the debate between he and I has always been quite civil. And in contrast, there was another guy older than Fama called Merton Miller. [Miller said,] “Every generation has to make their own mistakes.’” But the challenges haven’t stopped. Thaler continued, “There are still people over in the economics department who think that I’m very much mistaken.”

Psychologists offered their own criticism. With a twinge of sarcasm in his voice, Richard Nisbett addressed the challenges from the side of the psychologists: “My friend Lee Ross said that behavioral economics is social psychology with a name change for business reasons.”

The early leaders were adamant about avoiding relegation to a fringe movement. They refused to create their own boutique journal, and instead published in mainstream outlets for the entire field. They wanted their ideas to stand up next to all the others.

In the face of resistance, which at times veered from the professional into the personal, they persisted. Gradually, their ideas gained traction.

Change is a protracted and arduous process, fraught with impediments along the way. There’s no easy way around them, and going around them might be the worst thing to do.

Seize Serendipity

Finally, many of the great breakthroughs came down to luck and having the sense to embrace unexpected opportunities. Many of the leaders met by chance, found career-changing opportunities through informal conversations, and had key ideas fall into their laps.

For example, economist Colin Camerer noticed how odd it was that cabs were in short supply on rainy days in New York City, when economists predicted the opposite should have been true. Classical economic theory would predict that cab drivers would work to maximize their earnings across a broad horizon—months, for instance—so ending a shift early on a rainy day, when there is abundance of demand, didn’t make sense. Camerer picked up some data from the New York City Taxi and Limousine Commission but didn’t act on it. It took a chance encounter with labor economist Linda Babcock to kickstart the project. Linda recalled the two of them were “just shooting the breeze” in her office when Camerer mentioned the data.

The resulting paper, authored by Camerer, Babcock, Loewenstein, and Thaler, became a landmark finding: cab drivers set wage targets differently than as predicted by classical economic theory. Cab drivers, they found, focused on earning a daily target rather than a weekly or monthly one. It demonstrated the value of behavioral economics’ insights and informed the field of yet another important breach in our rational thinking.

Breakthroughs might result from chance encounters or fortuitous accidents. You might have a goal, but you can’t plan the entire journey—only the next step. The genesis of your next groundbreaking idea or transformative collaboration may lie in the most unlikely of places. By being receptive to changing course when a positive opportunity opens up, you can increase your chances of stumbling upon something truly extraordinary.

What’s in a Name?

So how did behavioral economics get its name? George’s recollection of the naming discussion came from the time he spent at the Center for Advanced Study in the Behavioral Sciences (CASBS) near Stanford during the 1997–1998 year. He was there with Colin Camerer, Drazen Prelec, Matthew Rabin, and Richard Thaler and, because of their collective work, it has been hailed as the Capstone Year at CASBS.

In July 2022, George and I revisited the topic for this series, and he repeated the story. “The whole group [Prelec, Rabin, Thaler, and Camerer] would meet once a week and discuss some issue. At one of them, the discussion was about what we would name the field. I advocated calling it psychological economics. And Richard Thaler wanted to call it behavioral economics. And he’s much better at selling things. And fortunately, he prevailed in that debate.”

George went on, “The thing that concerned me was that behavioral economics sounds like it was going to create an association between behaviorism and economics, which is very much not what we practice. I mean in behaviorism, all that matters is behavior, not what’s going on in people’s minds. Behavioral economics is really centered on the idea that what happens in people’s minds is really important.”

We asked the others too. Drazen Prelec’s memory was fuzzy. We posed the question to Thaler and his response was definitive: “I don’t know exactly when it happened.” Kahneman tossed and turned over the story. After a bit of back and forth, and with an air of modest uncertainty, he said, “It existed.” He was correct. We traced the use of the term, albeit in a modestly different context, to George Katona’s published work from Michigan in 1947, and Herb Simon’s 1955 paper, “A Behavioral Model of Rational Choice.” Four decades later the term took on a new life.

Funny how the leaders who changed how the world thinks about thinking don’t recall the revolution quite the same way.

Social Science, Ideology, Culture, & History

Can We Create a Pattern Language for Behavioral Design?

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• Chronic Disease Management
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