Behavioral Economics

This course covers a variety of topics and models that incorporate findings and concepts from psychology into economic analysis. The course addresses both experimental evidence and formal modeling. Themes studied may include social preferences (fairness, reciprocity), intrinsic vs. extrinsic motivation, self-control, motivated beliefs (overoptimism, wishful thinking), reference-dependent preferences (loss aversion, prospect theory), imperfect memory and attention, and bounded rationality (cognitive limitations, choice overload, satisficing).