Camerer, C. Prospect Theory in the Wild.
Expected Utility: gambles with risky outcomes, xi, with probabilities, pi, are valued by piu(xi) Prospect Theory: gambles are valued by piv(xi-r);
(p) weights probabilities nonlinearly, overweighting small probabi
Economics 3933: Behavioral Economics Spring 2011 Professor: John Hamman Office: 262 Bellamy, 645-9290 Email: [email protected] Overview:
This course explores the connections between economics and other social sciences, primarily psychology. Recent developme
Ryan Wisneski ECO3933 January 31st, 2011 1. Give 1 example of a reference point that is not drawn from expectations When we look at expectations we see the most likely event to happen in a case of uncertainty. These expectations can, or cant not, be reali
Ryan Wisneski ECO 3933 February 7th, 2011 Describe two instances, or one in great detail, in which private firms succumb to the money illusion bias that are not mentioned in the paper. When we look at money illusion in the private sector it is much more d
Ryan Wisneski Eco 3933 January 19, 2011 The Endowment Effect, although many argue has no place in individuals financial decision making, is a very present factor with regards to investing. When individuals take their time, carefully researching and planni