Foundations of Behavioral Economics
9 units (3-0-6) | first term
In this course we will examine behavioral economics models in several key decision-making contexts: choice over time, choice under uncertainty, choice in market settings (i.e., buying and selling), and others. In each topic area we will begin by providing the standard neoclassical account for behavior, building from assumptions (axioms) to corresponding utility models. We will then ask whether critical axioms of neoclassical models are plausible by calling upon psychological insights and empirical data. Rejection of neoclassical axioms will lead to new models, behavioral economics models, in each setting. These models, mechanisms and their testable predictions will be discussed.
The online version of the Caltech Catalog is provided as a convenience; however, the printed version is the only authoritative source of information about course offerings, option requirements, graduation requirements, and other important topics.