postponed to future semester
Optimal economic decision making on the level of individual economic units, in-depth study of (optimal) consumer decision-making, externalities, market failure, and behavioral economics.
Topics include, but are not limited to, choice under certainty, decisions under risk and uncertainty, intertemporal choice, market failure, externalities, and asymmetric information.
The course will enable students to gain an in-depth understanding of individual decision making in the economy.
The course will follow:
Angner, E., 2016. A course in behavioral economics. 2nd ed.. Macmillan International Higher Education. [BE]
Varian, H.R., 2014. Intermediate microeconomics with calculus. WW Norton & Company. [IM]
The required and recommended readings from these two texts are indictaed below by “BE: chapter” and “IM: chapter”, respectively.
Students must read the corresponding chapters of the textbook before each session. Reading the economic and political press will also be helpful.
I recommend that you try to solve the end of chapter problems in preparation and review of each class session.
Class meets each Tuesday at 15:30 till 18:00. Please bring a hard copy of the problems we want to discuss (see below) to each class.
Electronic devices, i.e. laptops, are discouraged from use during class sessions. See http://economicscience.net/content/laptop-use/ for the reasons.
Prof. Dr. Dennis A. V. Dittrich
You can always contact me via email. For meetings in my office appointments can be arranged through the my webpage at: http://economicscience.net/content/book-appointment.
Updated information, links to the literature, additional materials, etc. can be found on my webpage as well.
|Quizzes & Problem Sets||40%|
A typical 3 credit course requires 150 hours of your time. The table below identifies how I expect those 150 hours will be allocated. While you do not receive direct marks for reading, reading will affect your class participation mark (your ability to participate in class discussions and activities) and your final exam mark.
|Class Time (3 hours / week)||45 hours|
|Reading (3 hours / week)||45 hours|
|Preparation, Problem Sets, and Review (4 hours / week)||60 hours|
Topics and Reading Assignments
- Rational Choice under Certainty
- required: BE: 1 and 2
- recommended: IM: 2–5
- Decision Making under Certainty
- required: BE: 3
- Probability Judgment
- required: BE: 4
- Judgment under Risk and Uncertainty
- required: BE: 5
- Rational Choice under Risk and Uncertainty
- required: BE: 6
- recommended: IM: 12 and 13
- Decision Making under Risk and Uncertainty
- required: BE: 7
- The Discounted Utility Model
- required: BE: 8
- Intertemporal Choice
- required: BE: 9
- recommended: IM: 10
- Intertemporal Choice
- Game Theory
- required: BE: 10, IM: 29 and 30
- Behavioral Game Theory
- required: BE: 11
- required: IM: 32 and 33
- required: IM: 34 and BE: 12
- required: IM: 35
- Asymmetric Information
- required: IM: 38
Topics and reading assignments are subject to changes.
We will discuss problems – mostly taken from our textbook – in class. You will find the problems for download in a dropbox folder: here.
If you do not have a Dropbox account yet: Get one for free!