September 11 Homework assignment 1 due at 800 pm Boston time September 12

September 11 homework assignment 1 due at 800 pm

This preview shows page 7 - 10 out of 11 pages.

September 11 – Homework assignment #1 due at 8:00 pm (Boston time) September 12 – Session 2: Information, Complexity, and Calculation When faced with a decision to be made, people often leap to conclusions, or place too much emphasis on the wrong information, or fail to even consider all the possible options . Behavioral Economics (Philip Corr and Anne Plagnol) Chapter 2, “The ascent and dissent of economics” Chapter 3, “ECON: homo economicus Chapter 4, “HUMAN: more Homer (Simpson) than homo economicus The Paradox of Choice (Barry Schwartz) Chapter 3, “Deciding and Choosing” September 19 – off September 26 – off October 3 – Session 3: Uncertainty and Risk Most decisions are made in the face of uncertainty. Tools like decision trees can help show what assumptions are being made about probabilities and payoffs. But human nature does not value losses the same way it values wins in the same amounts. Thinking Fast and Slow (Daniel Kahneman) Chapter 25, “Bernoulli’s Errors”
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Page 8 of 11 Rev. August 23, 2019 Chapter 26, “Prospect Theory” Chapter 28, “Bad Events” Chapter 29, “The Fourfold Pattern” Chapter 30, “Rare Events” Chapter 31, “Risk Policies” Nudge (Richard H. Thaler and Cass R. Sunstein) Chapter 1, “Biases and Blunders” Calculated Risks (Gerd Gigerenzer) Chapter 4, “Insight” October 10 – Session 4: History and Temporality Decisions are not made in a vacuum, and things that happened in the past can influence the choices that people make. Past expenditures of time or money are not always treated as sunk costs. Looking at costs and benefits in the future requires tools for discounting future cash flows. But people’s choices do not always line up with what investment theory would predict. Thinking Fast and Slow (Daniel Kahneman) Chapter 27, “The Endowment Effect” The Winner’s Curse (Richard H. Thaler) Chapter 8, “Intertemporal Choice” Predictably Irrational (Dan Ariely) Chapter 7*, “The High Price of Ownership” *or Chapter 8, depending on which edition of the book you have October 17 – off October 25-27 – Session 5: ON-CAMPUS WEEKEND We will review the frameworks and behavioral biases discussed up to this point. Students will then work in groups to prepare projects analyzing an example from real-world behavior that can best be understood by using both the tools of traditional economics and the tools of behavioral economics. Predictably Irrational (Dan Ariely) Chapter 1, “The Truth about Relativity” Chapter 3, “The Cost of Zero Cost” Freakonomics (Steven D. Leavitt and Stephen J. Dubner) Chapter 3, “Why Do Drug Dealers Still Live with Their Moms?”
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Page 9 of 11 Rev. August 23, 2019 October 31 – Session 6: Reaction and Comparison Decision-making is more complicated when it involves more than one party, and not just a simple yes/no decision on one person’s part. Game theory offers useful insights, but doesn’t always explain how bubbles happen. Moreover, people’s decisions can often be understood only in relation to how other people will react to them.
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  • Spring '17
  • Jorge Ramos
  • Economics, Daniel Kahneman, Choice architecture, Freakonomics, Richard Thaler

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