We periodically invite to campus distinguished scholars to give mini-courses on a topic of current interest. These mini-courses are open to all members of
the Northwestern community as well as visitors from other Colleges and Universities.
Last updated: 5/7/19
Charles Sprenger, Associate Professor of Economics and Strategic Management at the Rady School of Management, UC San Diego, will present a mini-course on "Behavioral Foundations and Experimental Evidence in Time and Risk" during his visit to Northwestern in May.
Description: The mini-course will cover two core topics in behavioral analysis of individual decision-making: intertemporal and risky choice. In these two domains we will present standard neoclassical theories, examine plausible deviations therefrom, establish behavioral alternatives, and discuss experimental evidence for behavioral models. In decisions over time, focus will be placed on behavioral models of present-biased preferences. In decisions under uncertainty, focus will be placed on models such as prospect theory and rank-dependent utility. The empirical work discussed in this mini-course will come primarily from laboratory experiments, with discussion of field evidence and assessment of external validity where appropriate.
The mini-course will have three sessions as follows:
Lecture 1: "Behavioral Foundations in Intertemporal Choice: Laboratory and Field Elicitation of Time Preference" (Part 1)
Monday, May 13th, 3:30-5:00pm in the Kellogg Global Hub, Room 4101
Lecture 2: "Behavioral Foundations in Intertemporal Choice: Laboratory and Field Elicitation of Time Preferences" (Part 2)
Tuesday, May 14th, 3:30-5:00pm in the Kellogg Global Hub, Room 4101
Lecture 3: "Decisions Under Uncertainty: Behavioral Models and Recent Developments"
Thursday, May 16th, 3:30-5:00pm in the Kellogg Global Hub, Room 4101
Readings for the first and second sessions:
"Estimating Time Preferences from Convex Budgets" (James Andreoni and Charles Sprenger), American Economic Review, 2012, 102(7), 3333-3356.
"Working Over Time: Dynamic Inconsistency in Real Effort Tasks" (Ned Augenblick and Muriel Niederle and Charles Sprenger), Quarterly Journal of Economics, 2015, 130(3), 1067-1115.
Reading for the third session:
"Direct Tests of Cumulative Prospect Theory" (Doug Bernheim and Charles Sprenger)
Additional relevant readings:
“Doing it Now or Later” (O’Donoghue, Ted and Matthew Rabin), American Economic Review, 1999, 89 (1), 103–124.
“Choice and Procrastination” (O’Donoghue, Ted and Matthew Rabin), The Quarterly Journal of Economics, 2001, 116 (1), 121–160.
“Time Discounting and Time Preference: A Critical Review” (Frederick, Shane, George Loewenstein, and Ted O’Donoghue), Journal of Economic Literature, 2002, 40 (2), 351–401.
Decisions Under Uncertainty:
“Prospect Theory: An Analysis of Decision under Risk" (Kahneman, Daniel and Amos Tversky), Econometrica, 1979, 47 (2), 263–291.
“Advances in Prospect Theory: Cumulative Representation of Uncertainty” (Tversky, Amos and Daniel Kahneman), Journal of Risk and Uncertainty, 1992, 5 (4), 297–323.
For information on past mini-courses,