Economics 119: Psychology and Economics

Economics 119: Psychology and Economics (Fall 2011, UC Berkeley). Instructor: Professor Daniel J. Acland. This course presents psychological and experimental economics research demonstrating departures from perfect rationality, self-interest, and other classical assumptions of economics and explores ways that these departures can be mathematically modeled and incorporated into mainstream positive and normative economics. The course will focus on the behavioral evidence itself, especially on specific formal assumptions that capture the findings in a way that can be incorporated into economics. The implications of these new assumptions for theoretical and empirical economics will be explored.

Lecture 03 - Endowment-Effect Rationality Violations, Reference Dependence in Consumer Markets
Lecture 04 - Applications of Reference Dependence
Lecture 05 - Reference Point Determination
Lecture 06 - Expected Utility Theory and Prospect Theory
Lecture 07 - Applications of Prospect Theory
Lecture 08 - Midterm Review
Lecture 09 - Exponential Discounting Anomalies
Lecture 10 - Quasi-Hyperbolic Discounting
Lecture 11 - Applications of the Beta-Delta Model
Lecture 12 - Anticipatory Utility
Lecture 13 - State-Dependent Preferences and Projection Bias
Lecture 14 - Applications of Projection Bias
Lecture 15 - Behavioral Economics and Public Policy, Part 1
Lecture 16 - Behavioral Economics and Public Policy, Part 2
Lecture 18 - Bayes's Rule
Lecture 19 - Quasi-Bayesian Modeling - Base-Rate Neglect
Lecture 20 - Belief in the Law of Small Numbers, and Overconfidence
Lecture 21 - The Charness-Rabin Model and Distributional Preferences
Lecture 22 - Distributional Preferences and Face-Saving Concerns
Lecture 23 - Intentions-Based Preferences & Behavioral Game Theory
Lecture 24 - Behavioral Game Theory
Lecture 25 - Behavioral Game Theory 2
Lecture 26 - Final Review