1. Course page is on line (March 16)
  2. Lecture Notes are up.
  3. Slides for Week 5 and Wee 6 are up. (March 28)
  4. Midterm Exam Result (Apr.30)
  5. Lecture notes and related journal articles on Anomalies (1) and (2) are up. (Apr.30)
  6. Lecture notes for Prospect Theory and Consumer Behavior are up. (May 23)
  7. Final Exam coverage: From Anomalies (1) to the end.
  8. Final Exam Result is posed (June 6)

Course Syllabus

Lecture Slides:

Week 1: Introduction (Feb. 21)

Week 3: Videos (March 7)

Week 4: Availability, Anchoring and Adjustment (March 14)

Week 5: Representativeness (March 21)

Week 6: Individual vs. Statistical Judgement (March 28)

Week 7: Anomalies (1) (April 4, 25)

Week 9: Anomalies (2) (April 25, May 9)

Week 12: Prospect Theory (Most of Prospect Theory was discussed on the board)

Week 14: Consumer Behavior

Related Papers:

Week 3:

Anomalies: Utility Maximization and Experienced Utility, Daniel Kahneman and Richard H. Thaler,The Journal of Economic Perspectives, Vol. 20, No. 1 (Winter, 2006), pp. 221-234.

Week 4:

Judgment under Uncertainty: Heuristics and Biases, Amos Tversky; Daniel Kahneman, Science, New Series, Vol. 185, No. 4157. (Sep. 27, 1974), pp. 1124-1131.

Week 5:

Subjective Probability: A Judgement of Representativeness, Kahneman D. and Tversky A. Cognitive Psychology, 3. (1972) pp. 430-454.

Week 6:

Clinical versus Actuarial Judgement, Dawes, R.M, Faust, D., and Meehl, P.E. Science, New Series, Vol. 243, No.4899 (March 31, 1989) pp. 1668-1674.

Week 7:

Modelling Loss Aversion and Reference Dependency Effect on Brand Choice, Hardie, et al. Marketing Science, Vol.12, Number 4 (1993) pp.378-394

Anomalies: The Endowment Effect, Loss Aversion and Status Quo Bias, Kahneman et al. The Journal of Economics Perspective, 5(1) (1991) pp. 193-206

The Endowment Effect and the Evidence of Nonreversible Indifference Curves. Knetsch, The American Economics Review, 79(5) (1989)

The Patient Inertia and Status Quo Bias: When an Inferior Option is Preferred. Suri et al. Psychological Science 24(1763) (2013)


Week 9

The Framing of Decisions and the Psychology of Choice, Tversky and Kahneman, Science, New Series, 211(4481)(1981), pp.453-458.

Anomalies: Preference Reversals, Tversky and Thaler, Journal of Economic Perspectives,4(2)(1990)

Week 10

Prospect Theory: An Analysis of Decision under Uncertainty, Kahneman and Tversky, Econometrica (1979)