Behavioral Economic Concepts for Funding Infrastructure Rehabilitation

Abstract

Behavioral economics is a newly emerging field that examines the impact of psychological factors such as attitudes, biases, and behaviors on decision makers’ choices. Because many decisions in engineering and management involve subjective experience-based assessments of situations (e.g., bidding and fund-allocation), the psychological factors playing an important role in these decisions need to be considered. This paper thus introduces common behavioral economic concepts and examines the applicability of the most influential behavior