Travis Letellier

Behavioral Economics

Section 11
Tues / Thurs 2:30 - 3:45 PM
113 William Smith Hall




The Ten Principles of Economics


20th April

(1) This week we continue with the Behavioral Game Theory material (Topic VII, both parts).

(2) The last writing assignment is due on Thursday, April 30 (last day of class).

Paper 4 Case Study


(3) The Final Exam is Friday, May 08, from 9:00 - 11:30 AM.  It covers Topics VI - VIII.  The exam questions will be taken from the list below.

Final Exam Test Bank




Lecture Notes

Topic I:  A Survey of Behavioral Economics

Topic II:  Values, Attitudes, Preferences, and Choices

Topic III:  Decision-Making under Risk and Uncertainty

Topic IV:  Mental Accounting

Topic V:  The Discounted Utility Model

Topic VI:  Alternative Intertemporal Choice Models

Topic VII, Part 1:  Game Theory Review

Topic VII, Part 2:  Behavioral Game Theory

Topic VIII:  The Future of Behavioral Economics


Links To Papers

Introduction:  Behavioral Economics:  Past, Present, Future

The anomaly of endowment effects (the coffee mugs and pens experiment)

The anomalies of framing effects and preference reversals (Asian disease)

The original prospect theory paper (1979 version)

The Allais paradox is a powerful example of why people cannot form probabilities

Some excellent examples of loss-aversion and reference points

An “updated” prospect theory paper that looks at several anomalies from class

A simple, easy-to-read paper on mental accounting

A paper explaining the history of the standard discounted utility model

An influential paper on procrastination and hyperbolic preferences

The seminal paper on emotions in economic theory

Professor Camerer’s survey of behavioral game theory

Conclusion:  Advancing Beyond “Advances in Behavioral Economics”