Behavioral Economics Research Group

The Behavioral Economics Research Group consists of faculty in the Department of Economics with a common interest in identifying and modeling actual behavior in economic contexts. The results of the research have interest for managers and policy-makers who must predict the outcomes of their decisions.

BERG has recently been designated as a Targeted Research Unit within the College of Business.

Faculty Members:

William Neilson, Ph.D., J. Fred Holly Chair of Excellence
Christian Vossler, Ph.D., Director, UT Experimental Economics Laboratory
Mary Evans, Ph.D. Associate Professor of Economics
Scott Gilpatric, Ph.D. Associate Professor of Economics
Michael Price, Ph.D., Assistant Professor of Economics
Rudy Santore, Ph.D. Associate Professor of Economics

Research Sponsors: (current and previous)

Environmental Protection Agency
National Oceanic and Atmospheric Administration
National Science Foundation
Oak Ridge National Laboratory
Russell Sage Foundation
United States Air Force

What We Do:

Traditional economic analysis assumes that individuals, firms, and policy-makers are purely self-interested and make choices that are fully rational and use all available information. Behavioral economics, in contrast, recognizes that actual choices do not always fit within the standard model (e.g. people might care about equity) and that agents may employ heuristics instead of optimally using the available information. From the viewpoint of decision-making entities, whether they be individuals, firms, or policy-makers, it is vital to understand actual behavior so that they can respond appropriately. Behavioral economics provides insights missing from traditional economic theory that inform institutional decisions at many levels. Our research informs the design of auctions and markets, the development of regulations and incentive contracts, and is used to test and refine economic theory.

The Behavioral Economics Research Group uses economic techniques to identify and model behavioral patterns. Approaches include testing in the UT Experimental Economics Laboratory, field experiments, econometric studies, and theoretical work.

The Behavioral Economics Research Group uses economic techniques to identify and model behavioral patterns. Approaches include testing in the UT Experimental Economics Laboratory, field experiments, econometric studies, and theoretical work.

Research:

Forward-looking behavior in public-sector procurement
Valuation of non-market goods, especially risk reductions and environmental goods
Charitable fundraising
Corporate malfeasance
Responses to regulation
Bidding in auctions
Altruism and social preferences
Strategic behavior in non-cooperative games

Research Dissemination:

Members of the group have published their research in top academic journals in economics and business, including the following:

Econometrica
International Economic Review
Journal of Economic Theory
Journal of Environmental Economics and Management
Journal of Law and Economics
Journal of Public Economics
Marketing Science
Quarterly Journal of Economics
RAND Journal of Economics
Review of Economics and Statistics

Facilities:

The UT Experimental Economics Laboratory is a network of 24 workstations that allows participants to either perform individual tasks or interact with each other in group tasks. The latter is particularly advantageous for studying behavior in market and collective action settings. The laboratory is located in Stokely Management Center and maintained by the Department of Economics.

The Future:

The Behavioral Economics Research Group will continue to produce high-quality, publishable, basic and applied research. It will increase its emphasis on generating externally funded research and on outreach to business and governmental decision-makers.

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