Lecture, three hours. Behavioral economics incorporates insights from psychology (and other social sciences) to improve understanding of economic markets and decision making. By relaxing or replacing simplifying assumptions of standard economic models, behavioral economics aims to describe behavior with greater psychological realism and empirical accuracy. Overview of this rapidly developing field, and illustration of its implications for business and policy decisions across variety of contexts. Use of lectures, discussion, group interactions and projects, examination, and problem set to introduce topic of behavioral economics. Letter grading.