Causal Economics is a frontier branch of behavioral economics. It explains behaviors that can’t be effectively modelled by existing mainstream theories. Its central concept is causal coupling of cost and benefit – across individuals and society.
Our research has been published in peer reviewed academic journals and is available on ScienceDirect.com. Causal Economics places central focus on the fundamental principle of putting cause and effect between cost and benefit at the center of all decisions. It allows us to model real life decisions that span multiple periods and involve deliberate up-front costs followed by uncertain future benefits – for example losing 25 pounds. Mainstream economic theories aren’t able to model these scenarios because they are generally structured around single-period, cost OR benefit outcomes.