Arno Riedl

Behavioral and Experimental Economics Do Inform Public Policy

Rubrik: Papers from the CESifo Workshop on Behavioural Public Economics
FinanzArchiv (FA)

Jahrgang 66 () / Heft 1, S. 65-95 (31)

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Experimental and behavioral economics are well-established branches of economic science. This essay presents and discusses some results and behavioral regularities from these fields, which are of potential and actual importance for public policy. After a brief introduction to what experimental and behavioral economics are, some important behavioral regularities – presentation and framing effects, prosocial behavior, and reciprocity – are introduced, and it is reported how they interact with prominent trading institutions, taxation, and social and individual well-being. Throughout, some implications for public policy are discussed.

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