This textbook takes a new approach to Political Economy: it combines the well-known non-quantitative theories with the findings of behavioral science and other disciplines such as psychology and sociology. The question of how people behave and how such behavior can be guided towards welfare for everyone is the focus of this book. The knowledge is first derived scientifically, then the results are presented in summaries and conclusions. Case studies provide a link to practice. By means of exercises and behavioral games, readers can apply and deepen their acquired knowledge. The second edition has been completely revised and updated. Insights and didactic experiences from the Political Economy lectures held in the meantime have been incorporated.