Behavioural Economics Assignment Help,Experimental Economics  Homework Help

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                                                                       About Behavioral Economics 

Behavioural economics is that branch of economics which improves the field of economics by generating theories, predicts economic phenomena in a better way and suggests better policies. It depends on psychological insights and principles in human behaviour significantly for economic decision-making. Here, rationality is dependent on psychological bounds and measures. There are two categories of research in this branch of economics, behavioural economics, namely judgement and choice. The probability estimation processes by people are dealt with in judgement. In the case of choice, the action processes of people based on the judgements made by the people are studied.


Experimental economics depends mainly on experimental methods for answering economics questions. While behavioural economics considers experiments in its analysis, it does not depend exclusively on it. In experimental economics, controlled experiments are used to study how human behaviour affects economic theories. Thus, both behavioural economics and experimental economics are two converging but distinct branches of economics, which rely on data obtained from real economies observation instead of the traditional field data. Behavioural economics deals with theoretical and empirical studies of human decision making in cognitive psychology while experimental economics deals with tests of predictions from economic theory using laboratory experiments. Thus, both groups have their origins to psychology. Both the economics branches developed in the last quarter of this century.

The main difference between behavioural economics and experimental economics is the basic orientation. Behavioural economists are methodological eclectics. They define themselves by both the research methods employed and by the application of psychological insights into their approach. Behavioural economists use field research as experimentation. Experimental economists define themselves using their endorsement and use of experimentation as research tool. In this field, there are many novel experimental methods which make them appropriate for addressing economic issues. Thus, the methodological features of experimental economics are higher than behavioural economics where experiments are conducted by psychologists. Repetition is considered as very important in the experimental economics as one research tool. The main tool for achieving higher internal validity in behavioural economics is random assignment to treatment groups. However, in experimental economics, the treatment group run at different times and with different populations of subjects is compared directly for achieving higher internal validity. The observations here are dependent on one another sometimes .On the other hand, running an assignment without random experiment defeats the enterprise's whole purpose. Experimental economists have not been able to prove the problem of low external validity compared to behavioural economics. In spite of all these, behavioural economics acts as application of experimental methods.


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