Behavioral and Experimental Economics Can Inform Public Policy: Some Thoughts

Experimental and behavioral economics are well established branches in the eco- nomic science. This essay presents and discusses some results and behavioral regu- larities from these fields which are of potential importance for public policy. After a brief introduction of what experimental and behavioral economics is, some be- havioral regularities as presentation and framing effects, pro-social behavior, and reciprocity are introduced and it is reported how they interact with prominent trad- ing institutions, taxation, and social and individual well-being. Throughout some implications for public policy are discussed.