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Behavioral economic engineering

  • Bolton, Gary E.
  • Ockenfels, Axel

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.

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Article provided by Elsevier in its journal Journal of Economic Psychology.

Volume (Year): 33 (2012)
Issue (Month): 3 ()
Pages: 665-676

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Handle: RePEc:eee:joepsy:v:33:y:2012:i:3:p:665-676
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