Course Outline
- Introduction: What is behavioral economics? methods; guessing game & rationality
- Individual Choice: biases and paradoxes in decision-making, probability judgments & Monty Hall problem
- Altruism, Fairness: dictator and ultimatum games, voluntary payments
- Trust: trust game
- Honesty: determinants
- Cooperation: prisoners’ dilemma, public goods game, ways to cooperate
- Discrimination: based on gender, race, religion, attractiveness
- Salience: nudge, policy interventions, less visible price components
- Markets: competitive equilibrium, robustness, fairness, status concerns and repugnance as
constraints on profit maximization - Auctions: winner’s curse, late bidding end rules
- Behavioral Sports Economics: round numbers as goals, when a coin toss is unfair, performance under pressure
Reference Books
- Ariely, Dan. (2010). Predictably Irrational. Harper Perennial.
- Camerer, Colin F. (2003). Behavioral Game Theory: Experiments in Strategic Interaction. Princeton University Press.
- Camerer, Colin F., George Loewenstein, and Matthew Rabin. (ed.) (2003). Advances in Behavioral Economics. Princeton University Press.
- Thaler, Richar H., abd Cass R. Sunstein. (2009). Nudege: Improvinf Decisions About Health, Wealth and Happiness. Penguin Books.