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In this video, University of Warwick Economist, Robert Akerlof provides an introduction to a new type of behavioral economics. He explains how this type is being driven by a desire to understand how people are shaped by social interactions and what the economic consequences of this are. He begins the discussion by talking about a paper which looks to explain how people's values form from their experiences in high school.
Our social interactions with those around us impact the type of individuals we become and the values we hold. In its rationalisation of humanity, this is something which mainstream economics has perhaps overlooked. However, as Professor Akerlof explains, behavioral economics is seeking to fill the gap.
Go to: Behavioral Economics: The Next Generation