Behavioural Economics increases the explanatory power of economics by providing it with more realistic psychological foundations. Specifically, behavioural economics uses cognitive and emotional factors to understand and predict important economic decisions of individuals and institutions and their effects on market behaviour.
The NUS Centre for Behavioural Economics aspires to develop thought leadership in behavioural economics and be a leading centre of such research by publishing first-rate research in the most prestigious journals in business, economics and psychology.
To achieve these goals, the Centre will focus on three main activities:
1) to rigorously test standard economic theories and develop formal extensions that will make them more predictive
2) to induce positive behavioural change in people in order to increase social welfare
3) to inform and influence public policies
The Centre will be the first research centre that is exclusively devoted to behavioural economics research in Singapore.