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Behavioral economic engineering

Author

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  • Bolton, Gary E.
  • Ockenfels, Axel

Abstract

Economic engineering is the science of designing real-world institutions and mechanisms that align individual incentives and behavior with the underlying goals. This paper discusses why behavioral economic engineering is a promising research field, how behavioral phenomena may affect economic engineering, and the role of theory and laboratory experiments for behavioral economic engineering in practice. We provide examples, many from our own work.

Suggested Citation

  • Bolton, Gary E. & Ockenfels, Axel, 2012. "Behavioral economic engineering," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 665-676.
  • Handle: RePEc:eee:joepsy:v:33:y:2012:i:3:p:665-676
    DOI: 10.1016/j.joep.2011.09.003
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Michael Kirchler & Jürgen Huber & Matthias Stefan & Matthias Sutter, 2016. "Market Design and Moral Behavior," Management Science, INFORMS, vol. 62(9), pages 2615-2625, September.
    2. Bierbrauer, Felix & Ockenfels, Axel & Pollak, Andreas & Rückert, Désirée, 2017. "Robust mechanism design and social preferences," Journal of Public Economics, Elsevier, vol. 149(C), pages 59-80.
    3. van Damme, Eric & Binmore, Kenneth G. & Roth, Alvin E. & Samuelson, Larry & Winter, Eyal & Bolton, Gary E. & Ockenfels, Axel & Dufwenberg, Martin & Kirchsteiger, Georg & Gneezy, Uri & Kocher, Martin G, 2014. "How Werner Güth's ultimatum game shaped our understanding of social behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 292-318.
    4. Schnellenbach, Jan & Schubert, Christian, 2015. "Behavioral political economy: A survey," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 395-417.
    5. Gary Bolton & Ben Greiner & Axel Ockenfels, 2013. "Engineering Trust: Reciprocity in the Production of Reputation Information," Management Science, INFORMS, vol. 59(2), pages 265-285, January.
    6. Markus Pasche, 2013. "What Can be Learned from Behavioural Economics for Environmental Policy?," Jena Economic Research Papers 2013-020, Friedrich-Schiller-University Jena.
    7. Ockenfels, Axel & Selten, Reinhard, 2014. "Impulse balance in the newsvendor game," Games and Economic Behavior, Elsevier, vol. 86(C), pages 237-247.
    8. repec:eee:joepsy:v:65:y:2018:i:c:p:41-59 is not listed on IDEAS
    9. Justyna Brzezicka & Radosław Wisniewski, 2014. "Homo Oeconomicus and Behavioral Economics," Contemporary Economics, University of Finance and Management in Warsaw, vol. 8(4), December.

    More about this item

    Keywords

    Economic engineering; Behavioral economics; Experimental economics;

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D0 - Microeconomics - - General

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