Here is some more stuff on behavioral economics. I am not as quick as some to say that it will replace neoclassical economics, but I do think it will lead to some modifications of current economic theory. It may make developing good economic policies more difficult because it increases the uncertainty of particular outcomes. Of course, the assumption here is that governmental policies are based on achieving certain goals or outcomes, and I am not so sure that is the right basis. I would prefer to see freedom and fairness as the goals of economic policy.
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