Psychology and Economics

A hand holds a clear glass that contains a credit card frozen in ice.

Literally freezing your credit card in ice is a psychological tactic to help curb excessive spending. (Image by Paul Stocker on flickr. License: CC BY). 


MIT Course Number

14.13 / 14.131

As Taught In

Spring 2020


Undergraduate / Graduate

Cite This Course

Course Description

Course Features

Course Description

Psychology and Economics (aka Behavioral Economics) is a growing subfield of economics that incorporates insights from psychology and other social sciences into economics. This course covers recent advances in behavioral economics by reviewing some of the assumptions made in mainstream economic models, and by discussing how human behavior systematically departs from these assumptions. Applications will cover a wide range of fields, including labor and public economics, industrial organization, health economics, finance, and development economics.

Related Content

Frank Schilbach. 14.13 Psychology and Economics. Spring 2020. Massachusetts Institute of Technology: MIT OpenCourseWare, License: Creative Commons BY-NC-SA.

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