Lecture Macroeconomics (20/e): Chapter 8 - McConnell, Brue, Flynn

Chapter 8 - Behavioral economics. This chapter will define behavioral economics and explain how it contrasts with neoclassical economics. It will relate how prospect theory helps explain many consumer behaviors; and how time inconsistency and myopia cause people to make suboptimal long-run decisions. It will also define fairness and give examples of how it affects behavior in the economy.