The classical notion of rationality in urban and regional economics has to be modified in view of the psychological experiments in behavioral economics.
Yes behavioral economics is indeed applied to city planning,For example,In Mumbai,India, in order to reduce the incidence of railway casualties occurring during crossing of tracks,ideas were borrowed from field of behavioral economics.The campaign changed its nature from a simple warning note to a display of an image where a train progressing towards an individual is shown in three successive photographs which show the progress of the train towards the individual and magnify his face progressively.This indeed helped in reducing the incidence of accidents.
I would like to recommend my recent paper on tourism and simulacrum, where I discuss the "nudge perspective" to behavioral consistency that is needed for destination resilience (in tourism). The "behavioral turn" is embedded in the gamification perspective to destination development
Best Regards,
Bernard
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