What is behavioral economics? How does it relate to experimental economics?

Nathalie de Marcellis-Warin (Polytechnique Montréal), Pierre-Carl Michaud (HEC Montréal), Sabine Kröger (Université Laval), Huan Xie (Concordia University), Brahim Boudarbat (Université de Montréal) and Pierre-Olivier Pineau (HEC Montréal) provide us some answers to these questions in a new CIRANO video.

They explain that behavioral economics relies on analysis and modeling methods usually used in economics, to which are added psychological perspectives for better understanding and predicting behavior. The validation of models in behavioral economics relies mainly on data collection from field or laboratory experiments. Overall, experimental economics helps to answer important questions where empirical data are unavailable.

This video also offers an opportunity to rediscover the Claude Montmarquette Experimental Economics Laboratory, one of the first of its kind in Canada.

Video produced by Manon Blouet and Vincent Ouellet for CIRANO.