Motivation
Salience theory
Example Application
EC2030 Section 3: EUT, Critiques, Alternatives
(Part II)
Supplementary material to Andreis lecture
TF: Annie Liang
October 4, 2013
Misperceptions of prob
Reference-dependent Utility
KR framework
EC2030 Section 4:
EUT, Critiques, Alternatives (Part III)
TF: Annie Liang
October 4, 2013
Misperceptions of probability
An example
Reference-dependent Utility
Rabin Calibration Theorem
TF: Annie Liang
October 25, 2013
Rabin Calibration Theorem
Motivation
I
Under Expected Utility Theory,
risk aversion concave utility over wealth
I
I
Basic intuition: a dollar
2030 Problem Set 2 Solutions
Due Date: October 16, 2013 (in class)
Problem 1: Salience
Consider a risk-neutral local thinker faced with a choice between a lottery L = (x1 , p; x2 , 1 p) and a
sure pro
Expected Utility Theory
Local Thinking
EC2030 Section 2: EUT, Critiques, Alternatives
(Part I)
Supplementary material to Andreis lecture
TF: Annie Liang
October 4, 2013
Misperceptions of probability
E
2030 Problem Set 3
Due Date: December 4, 2013 (in class)
Problem 1
In this problem, we discuss the behavioral hazard model from Baicker, Mullainathan, and Schwartzstein
2013):Behavioral Hazard in Heal
2030 Problem Set 2
Due Date: October 16, 2013 (in class)
Problem 1: Salience
Consider a risk-neutral local thinker faced with a choice between a lottery L = (x1 , p; x2 , 1 p) and a
sure prospect S =
Problem Set 3 Solutions
Economics 2030
Problem 1: Behavioural hazard in health insurance
Solution by Jann Spiess.
The individuals problem. David and Sendhil both get a headache at t = 1 of severity s.
Ec 2030 Problem Set 1 Solutions
Original solutions by Dan Benjamin
Revised by James Burns Nov 2008
Problem 1 (When should I do a project?):
a. Consider a quasi-hyperbolic naive with =
indexed by the w