Behavioral Economics and Its Applications
行为经济学代写 Students with Disabilities: If you have a documented disability and anticipate needing accommodations in this course, please make
Behavioral economics incorporates psychologists’ perspectives on how people behave into formal economic analysis. Traditionally, economic theories assumes that people are good at making choices that achieve their aims. However, experimental evidences increasingly support the idea that people often deviate from rational behavior in systematic ways. This course focuses on what these deviations are and what kind of new insights they bring to economic applications
Assignments and Grading
Problem sets: There will be weekly homework. Problem sets will be posted by Wednesday night and due every Wednesday in class. I strongly encourage you to work in groups, but you must write
the homework in your own language.
Exams: There is a midterm (Feb 8th Monday in class) and a final exam (March 18th Thursday
Grades: Homework counts for 10%, the midterm counts for 40%, the final counts for 50%.
Grading Policies: No makeup exams will be given. In the case of a missed midterm due to unanticipated emergency situations, the student will be allowed to put the weight of the missed
exam on the final exam, provided I am notified as soon as possible (concrete proof is needed).A missed final due to an unanticipated emergency will be handled with an “incomplete” for the
course, assuming that I agree the situation represents an unanticipated emergency. Be aware that that the Registrar will automatically convert a grate of “incomplete” to an F after one calendar
year. Do not take this class if you already know you cannot make one of the scheduled exams.
Grading will be consistent with the typical distribution for economics classes. 行为经济学代写
Academic Dishonesty Policy: Academic dishonesty (from plagiarizing work to cheating on exams) will not be tolerated. Please acquaint yourself with the Student Conduct Code, which is
published in the Schedule of Classes each term
Students with Disabilities: If you have a documented disability and anticipate needing accommodations in this course, please make arrangements with me during the first week of the term.
Please request that the counselor for students with disabilities (164 Oregon Hall) sends me a letter verifying your disability.
Student Athletes: If you are a student athlete and will need special accommodations, it is your responsibility to notify me in a timely and appropriate manner, and to support your request for
special accommodations by providing appropriate documentation.
The textbook is optional, but I strongly recommend you to purchase one.
Eric Angner, A Course in Behavioral Economics, Palgrave Macmillan.
See below for the topics covered and associated required readings.
1 Choice under certainty (Week 1,2, Angner Chapter 2,3)
Preferences and choices
Opportunity costs and sunk costs
Loss aversion and the endowment effect
The decoy effect and unstable preferences
2 Judgement under uncertainty (Week 3,4, Angner Chapter 4,5)
Probability and Bayesian updating
Heuristics and Biases
3 Choice under uncertainty (Week 5,6, Angner Chapter 6,7)
Expected utility and risk aversion
Prospect theory function
Probability weighting and Ambiguity Aversion
4 Choice over time (Week 7,8, Angner Chapter 8,9)
5 Strategic Interactions (Week 9,10, Angner Chapter 10, 11)
Normal form games and extensive form games
Distributional social preferences
Psychological game theory