Behavioral Economics

(4 Credits)

This course explores the effects of psychological factors on economic behavior. We will analyze the observations from the real world that cannot be well explained by classical economic models, and enrich the standard model by incorporating psychological phenomena, such as bounded rationality, loss aversion, time inconsistency and social preferences. We will present both theoretical models and empirical evidence from experiments or real world data. Applications include marketing, asset pricing, game theory, consumption and savings, and public policy. Prerequisites: Microeconomics courses: ECON-SHU 3 or ECON-SHU 150 and Statistics courses: BUSF-SHU 101 or MATH-SHU 20 or MATH-SHU 235 or MATH-SHU 170 or BIOL-SHU 42 or other equivalent courses in statistics. Fulfillment: Economics Major Elective.