Behavioral Economics

This course surveys the most salient dimensions known to the discipline of Behavioral Economics. It compares the traditional behavioral approaches in economics with those developed in recent times. Students in this course are introduced to various human irrationalities, their prevalence, causes, and economic consequences. Behavioral biases discussed in this class include sunk-cost fallacy, present-biased preferences, status quo bias, self-serving bias, gambler's fallacy, inequity aversion, reciprocity, endowment effect, disposition effect, greed and fear, and herd behavior. The course also encompasses the important implications of the above mentioned biases on several economic facets of social life such as saving and investment for retirement, insurance, education, and race and gender wage discrimination.

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