Economic modeling has two objectives: to understand the mechanisms that lead to choices and to use this knowledge to make policy recommendations. So far the field has relied almost entirely on the rational paradigm, which offers an unambiguous and objective way to evaluate choices and a point of comparison for actual observed behavior. However, the predictions of the rational paradigm cannot always be reconciled with observed choices. By designing simple experimental controlled environments, it is possible to isolate the points of departure from rationality and to measure the deviations from the rational paradigm. By collecting a variety of data (choice and non choice) it is also possible to understand the underlying reasons for those departures. The studies conducted at LABEL rely on the combination of standard experimental economics methods, novel data collection techniques and theoretical modeling to quantify and explain a variety of behavioral departures.
In our current research, we investigate novel methods to revisit standard paradigms on individual decision-making and strategic behavior. We are also particularly interested in age-related aspects of decision-making. We are currently investigating how preferences change during development and through the aging process. We invite you to check the links on that page to learn more about our projects and our collaborations.