Economic Psychology

(Neo)classical economics is based on assumptions about human behavior which are seriously criticized. Especially, psychology challenges neoclassical assumptions about individual behavior, group behavior, and markets.

Economic psychology focuses on behavior and experiences in the marketplace and in the economy generally. Topics regard decision-making under uncertainty, lay theories, production of goods and consumption, labor markets, and stock markets, shadow economy, and tax compliance as well as welfare and national happiness.

More information about the Economic Psychology is available here.