EC 404 ·Fall 2026

Schedule

A roadmap for the semester, revised as we go. Assignments are always due before the start of class.

Introduction to Behavioral Economics

Welcome

notes ·slides ·PS 0 (optional)

Tue, Sep 1

Choice under Uncertainty

The Standard Model: Expected Utility

notes ·slides ·PS 1 (due Sep 15)·solutions

Thu, Sep 3

Expected Utility, concluded · The Evidence Against It begins

notes ·slides

Tue, Sep 8

Evidence that Contradicts Expected Utility, continued

notes ·slides ·PS 2 (due Oct 1)·solutions

Thu, Sep 10

Prospect Theory

notes ·slides

Tue, Sep 15

Applications of Prospect Theory

notes ·slides

Thu, Sep 17

—

Remote Class

slides · Every class day after this one moves back by one

Tue, Sep 22

Applications of Prospect Theory, continued

notes ·slides

Thu, Sep 24

Reference-Dependent Preferences

notes ·slides ·PS 2a (optional)

Tue, Sep 29

⊛

Exam 1

In class · everything through Reference-Dependent Preferences

Thu, Oct 1

Intertemporal Choice

Warm-up on Interest Rates

notes ·slides ·PS 3 (due Oct 22)

Tue, Oct 6

The Standard Model: Exponential Discounting

notes ·slides

Thu, Oct 8

An Alternative Model: Present Bias

notes ·slides

Tue, Oct 13

Present Bias, continued: Choices, Beliefs, and Self-Control

notes ·PS 4 (due Nov 3)

Thu, Oct 15

Present Bias: Naïfs, Sophisticates, and Doing It Once

notes

Tue, Oct 20

Present Bias: Procrastination and Health Clubs

notes

Thu, Oct 22

—

Fall Break — no class

Tue, Oct 27

Present Bias: Saving and Commitment

notes

Thu, Oct 29

Utility from Anticipation

notes

Tue, Nov 3

Projection Bias — Mispredicting Future Tastes

notes

Thu, Nov 5

Public Policy to Combat Errors

Public Policy: Paternalism and Optimal Sin Taxes

notes

Tue, Nov 10

Exam 2 Review and Worked Problems

notes

Thu, Nov 12

⊛

Exam 2

In class · Interest Rates through Optimal Sin Taxes (PS 3–5)

Tue, Nov 17

Errors in Statistical Reasoning

The Standard Model: Bayesian Information Processing

notes

Thu, Nov 19

Bayesian Processing: Applications and Belief Errors

notes

Tue, Nov 24

—

Thanksgiving Recess — no class

Thu, Nov 26

An Alternative Model: The "Law of Small Numbers"

notes

Tue, Dec 1

Social Preferences and Scarcity

Altruism and Social Preferences

notes

Thu, Dec 3

Social Preferences: Welfare and Reciprocity

notes

Tue, Dec 8

The Psychological Costs of Poverty · Course Synthesis

notes

Thu, Dec 10

⊛

Final Exam

10:10am–12:10pm

Wed, Dec 16