Lecture Notes

LEC # TOPICS
1 Introduction (PDF)
2 Experiments Showing Bounded Rationality (PDF)
3 Objections to Behavioral Economics, and Responses; Prospect Theory (PDF)
4 Prospect Theory (PDF)
5 1st Order Risk Aversion (PDF)
6 Open Questions in Prospect Theory (PDF)
7 Heuristics and Biases (PDF)
8 Random Utility Models and Consumer Confusion, Part 1 (PDF)
9 Random Utility Models and Consumer Confusion, Part 2 (PDF)
10 Shrouded Attributes (PDF) (Courtesy of David Laibson. Used with permission.)
11 Shrouded Attributes and Advertising (PDF)
12 Neuroeconomics, Part 1
13 Neuroeconomics, Part 2 (PDF)

Hedonics (PDF)
14 Happiness (PDF)
15 Intertemporal Choice (PDF)
16 A Calibrated Behavioral Model (PDF)
17 Hyperbolics (PDF)
18 Consumption Path (PDF)
19 Fairness (PDF)
20 Market Efficiency
21 Investors
22 Limited Arbitrage Model
23 Closed-End Mutual Funds and Bubbles
24 Simple Rules Generating Complex Behavior: Econophysics (PDF)