Behavioral and Experimental Economics Can Inform Public Policy: Some Thoughts

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Working paper
Arno Riedl
Issue number: 
Maastricht University
Experimental and behavioral economics are well established branches in the eco- nomic science. This essay presents and discusses some results and behavioral regu- larities from these fields which are of potential importance for public policy. After a brief introduction of what experimental and behavioral economics is, some be- havioral regularities as presentation and framing effects, pro-social behavior, and reciprocity are introduced and it is reported how they interact with prominent trad- ing institutions, taxation, and social and individual well-being. Throughout some implications for public policy are discussed.
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