Experimental and Behavioral Economics

Experimental and Behavioral Economics are branches of economics that study how people actually make decisions, often in ways that differ from traditional economic theories. Experimental Economics involves controlled experiments to test economic theories and observe behavior in a structured setting. Behavioral Economics, on the other hand, examines psychological factors and biases that influence decision-making, such as emotions and social pressures. In the context of Industrial Economics, these approaches help understand firm behavior, market dynamics, and consumer choices more accurately, leading to better policies and business strategies that account for real-world complexities.