Behavioral Economics
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

01
Welcome
notes ·slides ·PS 0 (optional)
Tue, Sep 1

Choice under Uncertainty

02
The Standard Model: Expected Utility
notes ·slides ·PS 1 (due Sep 15)
Thu, Sep 3
03
Expected Utility, concluded · The Evidence Against It begins
notes ·slides
Tue, Sep 8
04
Evidence that Contradicts Expected Utility, continued
notes
Thu, Sep 10
05
Prospect Theory
notes
Tue, Sep 15
06
Applications of Prospect Theory
notes
Thu, Sep 17
07
Applications of Prospect Theory, continued
notes
Tue, Sep 22
08
Reference-Dependent Preferences
notes
Thu, Sep 24
⊛
Exam 1
In class · everything through Reference-Dependent Preferences
Tue, Sep 29

Intertemporal Choice

09
Warm-up on Interest Rates, then the Standard Model: Exponential Discounting
notes
Thu, Oct 1
10
Evidence that Contradicts Exponential Discounting
notes
Tue, Oct 6
11
An Alternative Model: Present Bias
notes
Thu, Oct 8
12
Present Bias, continued
notes
Tue, Oct 13
13
Applications of Present Bias
notes
Thu, Oct 15
14
Applications of Present Bias, continued
notes
Tue, Oct 20
15
Utility from Anticipation
notes
Thu, Oct 22
—
Fall Break — no class
Tue, Oct 27
16
Projection Bias — Mispredicting Future Tastes
notes
Thu, Oct 29

Public Policy to Combat Errors

17
Is "Paternalism" Acceptable or Justified?
notes
Tue, Nov 3
18
Optimal Sin Taxes
notes
Thu, Nov 5
⊛
Exam 2
In class · from Interest Rates through Optimal Sin Taxes
Tue, Nov 10

Errors in Statistical Reasoning

19
The Standard Model: Bayesian Information Processing
notes
Thu, Nov 12
20
Bayesian Processing, concluded · The Evidence Against It begins
notes
Tue, Nov 17
21
Evidence that Contradicts Bayesian Processing, continued
notes
Thu, Nov 19
22
An Alternative Model: The "Law of Small Numbers"
notes
Tue, Nov 24
—
Thanksgiving Recess — no class
Thu, Nov 26

Social Preferences and Scarcity

23
Altruism and Social Preferences
notes
Tue, Dec 1
24
Altruism and Social Preferences, continued
notes
Thu, Dec 3
25
The Psychological Costs of Poverty
notes
Tue, Dec 8
26
Last Class — Review for the Final
Thu, Dec 10
⊛
Final Exam
10:10am–12:10pm
Wed, Dec 16