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 Sep 29)

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

Tue, Sep 29

⊛

Exam 1

In class · everything through Reference-Dependent Preferences

Thu, Oct 1

Intertemporal Choice

Warm-up on Interest Rates, then the Standard Model: Exponential Discounting

notes

Tue, Oct 6

Evidence that Contradicts Exponential Discounting

notes

Thu, Oct 8

An Alternative Model: Present Bias

notes

Tue, Oct 13

Present Bias, continued

notes

Thu, Oct 15

Applications of Present Bias

notes

Tue, Oct 20

Applications of Present Bias, continued

notes

Thu, Oct 22

—

Fall Break — no class

Tue, Oct 27

Utility from Anticipation

notes

Thu, Oct 29

Projection Bias — Mispredicting Future Tastes

notes

Tue, Nov 3

Public Policy to Combat Errors

Is "Paternalism" Acceptable or Justified?

notes

Thu, Nov 5

Optimal Sin Taxes

notes

Tue, Nov 10

⊛

Exam 2

In class · from Interest Rates through Optimal Sin Taxes

Thu, Nov 12

Errors in Statistical Reasoning

The Standard Model: Bayesian Information Processing

notes

Tue, Nov 17

Bayesian Processing, concluded · The Evidence Against It begins

notes

Thu, Nov 19

Evidence that Contradicts Bayesian Processing, continued

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

Altruism and Social Preferences, continued

notes

Tue, Dec 8

The Psychological Costs of Poverty

notes

Thu, Dec 10

⊛

Final Exam

10:10am–12:10pm

Wed, Dec 16