Buy ECON 3124
Behavioural Economics Assignments
According to economic research conducted through field and lab experiments, there are somewhat strong deviations in the behaviour of the homo oeconomicus model; what the basic economic theory considers to be a reasonable and egotistic maker of decisions.
This course intends to examine in critical detail the problems such behavioural deviations cause for economic theory, as well as the economic decision-making models that are meant to forecast actual economic behavioural outcomes.
In particular, students will study; the preference theory that is dependent on references; prospect theory (as well as its core component loss aversion); among other relevant issues such as time and risk preferences, effects of endowment, self-regulation/self-control, the Concorde/sunk cost myth, cognitive fantasies e.g. too much confidence, action inertia, non-complex heuristics that smarten us up, and mental accounting.
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