The course is divided into two parts:
- The first half, on behavioral decision theory, studies models in which standard economic rationality assumptions are combined with psychologically plausible assumptions on behavior. We consider whether the new models improve the ability to predict and understand choice under uncertainty (and certainty), probabilistic judgment, and intertemporal choice.
- The second half, on behavioral game theory, studies how players model others’ decisions in initial responses to games; and how players learn to predict others’ decisions via learning in the repeated play of analogous games.
