| Students can understand and apply behavioral economic models, such as prospect theory and bounded rationality, to explain deviations from standard economic predictions.
They can analyze how cognitive biases, heuristics, and framing effects influence individual decision-making and market outcomes.
Be able to assess the role of social preferences (e.g., fairness, altruism, reciprocity) and social norms in shaping economic behavior.
Students can evaluate the implications of time-inconsistent preferences and analyze policies aimed at improving self-control, such as commitment devices.
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Social preferences, prospect theory and reference points, time inconsistent preferences, present bias, altruism, reciprocity, overconfidence, loss aversion, mental accounting
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