Topics in Behavioral Economics and Bounded Rationality
When is this course offered:

I will not be teaching this course in the future

Starting Spring 2008 I will be teaching the Ph.D. Decision Theory

This course covers recent work that incorporates psychologically plausible assumptions into economic and game theoretic models. Although our primary focus is on theoretical works and foundations, we will also cover some recent experimental and psychological studies.

The course covers (1) tools, such as psychological games; quantal response models; noisy introspection and k-level rationality; learning theory; evolutionary models; dual-self models, as well as (2) specific biases such as concern for fairness; self-control; relative consumption effects; bounded memory; confirmation bias; over-optimism; the sunk cost bias; classification heuristics and complexity.

Students should have completed the Microeconomic Theory sequence and have a solid understanding of basic Game Theory. This course may be inappropriate for first year Ph.D.'s

Download of the most up to date copy of the syllabus  

 

Download course readings (these will be available in .zip format shortly before the
course starts and then updated weekly.

 

Week 0 Surveys, literature reviews... Read them at your leisure; I do not plan to cover these in class
Weeks 1 This includes the papers on psychological games, fairness, and QRE
Week 2 k-level rationality and noisy introspection
Week 3-4 Psychological context
Week 4-5 Evolution of preferences
Week 6-7 Specific Biases
Week 7 Perspective
Week 8-9 Learning
Week 10 Categorization and complexity