Behavioral, Experimental and Network Economics

Behavioral Economics is just like standard economics, but with a slight emphasis on incorporating robust insights from psychology into the standard economic models. This exercise is particularly useful in cases where human behavior systematically deviates from the predictions of the standard model. Usually behavioral economics goes hand and hand with experimental economics, the practice of designing, running, and analyzing controlled economics experiments. The predictions of theoretical models (both behavioral and standard) are tested in the laboratory, or in a field setting, with human subjects. The results of these experiments in turn guide the building of theoretical models. Network Economics approaches the study of economics focusing on the patterns of interaction among the economic agents.