The Methodology of Behavioural Economics

Abstract

We introduce behavioural economics from a methodological perspective, i.e. by outlining its ‘Hows’. We focus on three main methodological features: (1) The use of quantitative empirical methods from behavioural science, (2) the application of the resulting behavioural insights to explain economic phenomena under (3) the adherence to the traditional aims and spirit of economic science. We discuss the potential for tension between these three and the implications for the future development of behavioural economics.

Keywords: Behavioural economics, economic methodology

JEL Classification: B41, D9, E7,G 4