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Cover of: Behavioral and Experimental Economics Do Inform Public Policy
Arno Riedl

Behavioral and Experimental Economics Do Inform Public Policy

Section: Papers from the CESifo Workshop on Behavioural Public Economics
Volume 66 (2010) / Issue 1, pp. 65-95 (31)
Published 09.07.2018
DOI 10.1628/001522110X503389
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Summary
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.