Behavioral Economics & Finance

This outline provides a structured overview of the course content, linking to each lecture to help you navigate through the material.

Week 1: Foundations of Behavioral Economics

• Lecture 1: What and Why

• Lecture 2: BE in Relation to other Sciences & Economics

• Lecture 3: Evolution of BE

• Lecture 4: The Neoclassical Tradition - An Introduction

• Lecture 5: Methodology - Types of Empirical Studies

Week 2: Motivation & The Standard Model

• Lecture 6: Intro to Motivation and Hierarchical Needs

• Lecture 7: Achievement and Craftmanship - Driving Forces in Economic Behavior

• Lecture 8: Social Drivers of Economic Decisions

• Lecture 9: The Standard Model in Neoclassical Economics

• Lecture 10: Axioms & Assumptions of NM

Week 3: Bounded Rationality & Biases

• Lecture 11: Utility

• Lecture 12: Types of Utility

• Lecture 13: Bounded Rationality & Heuristics

• Lecture 14: Biases

• Lecture 15: Heuristics & Framing Effects

Week 4: Choice Architecture & Probability

• Lecture 16: Menu Effects

• Lecture 17: A few effects & Choice Architecture

• Lecture 18: Nudges

• Lecture 19: Fundamental of Probability Theory

• Lecture 20: Bayesian Updating and Confirmation Bias

Week 5: Prospect Theory I

• Lecture 21: Prospects & Risk Attitude

• Lecture 22: Risk Attitude & Axioms of EUT

• Lecture 23: Other Axioms & Violations of EUT

• Lecture 24: Anomalies of EUT & Prospect Theory

• Lecture 25: Prospect Theory - Evaluation

Week 6: Prospect Theory II & Criticisms

• Lecture 26: The Value Function

• Lecture 27: The Weighting Function

• Lecture 28: Cumulative Prospect Theory I

• Lecture 29: Cumulative Prospect Theory II

• Lecture 30: Criticisms of Prospect Theory

Week 7: Mental Accounting I: Framing & Hedonic Editing

• Lecture 31: Mental Accounting

• Lecture 32: Hedonic Editing Hypothesis

• Lecture 33: Hedonic Framing, Acquisition Utility, and Transaction Utility

• Lecture 34: Applications of Mental Accounting

• Lecture 35: Payment Decoupling & Budgeting

Week 8: Mental Accounting II: Applications & Life-Cycle Theories

• Lecture 36: Behavioral & Classical Life-Cycle Theories

• Lecture 37: Budgeting & Choice Bracketing

• Lecture 38: Choice Bracketing & Dynamic Mental Accounting

• Lecture 39: Policy Implications of Mental Accounting

• Lecture 40: Policy Implications of Mental Accounting - II

Week 9: Intertemporal Choice I: DUM Foundations

• Lecture 41: Intertemporal Choice Models

• Lecture 42: Optimal Consumption in the Two-Period Model

• Lecture 43: Projection Bias

• Lecture 44: Discounted Utility Model

• Lecture 45: Features of the Discounted Utility Model

Week 10: Intertemporal Choice II: Anomalies & Hyperbolic Discounting

• Lecture 46: Anomalies in DUM

• Lecture 47: Anomalies of DUM & Time-Inconsistent Behavior

• Lecture 48: Naive Hyperbolic Discounting

• Lecture 49: Naive Quasi-Hyperbolic Discounting

• Lecture 50: Some Special Discounting Cases

Week 11: Game Theory I: Analytical & Sequential Games

• Lecture 51: Introduction to Strategic Interactions

• Lecture 52: Analytical Game Theory

• Lecture 53: Sequential Game & Types of Games

• Lecture 54: Problems with Classical Game Theory - I

• Lecture 55: Centipede Games

Week 12: Game Theory II: Behavioral Games & Social Preferences

• Lecture 56: Problems with Classical Game Theory - III

• Lecture 57: Introduction of Behavioral Games

• Lecture 58: Ultimatum & Dictator Games

• Lecture 59: Ultimatum & Public Goods Games

• Lecture 60: Trust Games