Behavioral Economics (330-0-20)

Instructors

Chiara Sotis

Meeting Info

University Hall 122: Tues, Thurs 12:30PM - 1:50PM

Overview of class

Standard economic theory assumes that people are perfectly rational, have unlimited willpower, and only care about their own payoffs. Behavioral economics asks: what happens when we replace these assumptions with what psychology tells us about how people actually think and behave? This course will introduce you to major topics in behavioral economics and show you how incorporating psychological insights can improve economic predictions and policy recommendations. We'll cover key departures from the standard models - like how people use mental shortcuts that lead to predictable biases, struggle with self-control, and care about fairness and social comparisons. Throughout, we'll connect theory to real-world applications (from retirement savings to organ donation to pricing strategies) and look at empirical evidence to see when these behavioral insights actually matter for predicting behavior and designing better policy.

Registration Requirements

ECON 281-0, ECON 310-1, ECON 310-2, ECON 311-0 I'll assume knowledge of Lagrangians and the game theory taught in 310-2 through subgame perfection. While this course isn't a Mathematics course, familiarity with mathematical tools and intermediate Microeconomics will allow you to really appreciate the differences between our models and the neoclassical ones.

Teaching Method

Lecture: 2/week Discussion section: 1/week

Evaluation Method

40% group presentation in class, 60% exam

Class Materials (Required)

There is no textbook but readings will be made available and I will suggest textbook chapters whenever it's helpful.

Enrollment Requirements

Enrollment Requirements: Pre-requisite: Students must have taken ECON 310-1 or MMSS 211-1 and ECON 281 or ECON 381-1 or MATH 386-1 or IEMS 304 or STAT 350 to successfully enroll in this course.

Associated Classes

DIS - University Hall 122: Fri 1:00PM - 1:50PM