Psychology and Economics

Catalog description

Incorporation of psychological insights into economic models, with emphasis on empirical evidence. Also known as behavioral economics. Analysis of how individuals depart from a standard economic model in three ways: 1) nonstandard preferences, such as procrastination, 2) nonstandard beliefs, such as overconfidence about one’s ability, and 3) nonstandard decision making, such as framing effects and the roles of social pressure and peer influences. Some class meetings will be held jointly with a corporate partner or startup, and a class project will apply behavioral economics principles to a real-world issue within the context of a design-thinking process. Satisfies the Social-Science requirement. Prerequisites & Notes Economics 204 and Economics 202.