Economic theory emphasizes on the use of the theoretical and mathematical approach to analyze economic models.
An advantage claimed for the approach is its allowing formulation of theoretical relationships with rigor, generality, and simplicity.
How are collective decisions made? and How do different “rules of the game” (institutions) affect the allocation of resources?
The tendency in contemporaneous economics is toward a global market, in which products, services, investment capital and labour frequently cross international borders.
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.