Course Outline

  1. Introduction: What is behavioral economics? methods; guessing game & rationality
  2. Individual Choice: biases and paradoxes in decision-making, probability judgments & Monty Hall problem
  3. Altruism, Fairness: dictator and ultimatum games, voluntary payments
  4. Trust: trust game
  5. Honesty: determinants
  6. Cooperation: prisoners’ dilemma, public goods game, ways to cooperate
  7. Discrimination: based on gender, race, religion, attractiveness
  8. Salience: nudge, policy interventions, less visible price components
  9. Markets: competitive equilibrium, robustness, fairness, status concerns and repugnance as
    constraints on profit maximization
  10. Auctions: winner’s curse, late bidding end rules
  11. Behavioral Sports Economics: round numbers as goals, when a coin toss is unfair, performance under pressure

Reference Books

  1. Ariely, Dan. (2010). Predictably Irrational. Harper Perennial.
  2. Camerer, Colin F. (2003). Behavioral Game Theory: Experiments in Strategic Interaction. Princeton University Press.
  3. Camerer, Colin F., George Loewenstein, and Matthew Rabin. (ed.) (2003). Advances in Behavioral Economics. Princeton University Press.
  4. Thaler, Richar H., abd Cass R. Sunstein. (2009). Nudege: Improvinf Decisions About Health, Wealth and Happiness. Penguin Books.