Behaviorial Economics

Behavioral economics stresses the need to incorporate psychological considerations into economics. Topics include: (1) decision making under risk (loss aversion, probability weighting); (2) decision making across time (self-control, timing preference), (3) other-regarding preference (altruism, reciprocity); (4) Strategic thinking (step thinking, theory of mind). Evidence from financial market, saving behavior, labor market and other areas will be used to show how behavioral economics can be fruitfully applied to yield important insights into behavior under different settings. Overall, this course aims to help you develop skills on (1) how to incorporate psychology could help explain economic behavior, (2) how to apply behavioral economics to various economic and business settings.