ECON 425Behavioral Economics

Catalog

A substantial body of evidence shows that choices systematically deviate from the predictions of traditional economic models. Behavioral economics, a relatively recent branch of economics, integrates insights from psychology and other social sciences to improve our models of human behavior. In this course, we examine core economic models (e.g. utility maximization, expected utility theory, and time-discounted utility as covered in ECON 360) and explore experimental and real-world evidence that highlights the consistent departures from these theoretical predictions. Discussions build on knowledge and tools from microeconomic theory, introductory calculus and basic statistics. Grading: Closed-book exam and quizzes, assignments, and presentations. Prerequisites: Grade of C or better in ECON 360, college level statistics and college level calculus."