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Behavioral and Experimental Economics
Fall 2019, Higher School of Economics


October 29 announcements:

You have been signed up for an experiment on November 5 or November 7. Check your e-mails!

Dan Ariely is giving a lecture at NES next week (sign up link). Attending and answering the following questions earns you a maximum of 4 extra credit points for the quizzes:

1. Give one example from the talk of behavior that Dan describes as irrational and explain how an economist might disagree with Dan and argue that the behavior can be rational in the context of some model of preferences and beliefs.
2. The topic of Dan's talk is "How to use behavioral economics to design better products." Summarize Dan's answer to this question in one paragraph. Do you agree that behavioral economics can be used to make better products? Explain.

Section 1 readings (Introduction):

Lecture notes
Chapter 1 of Mostly Harmless Econometrics
Hertwig and Ortmann
Card, et al. (the section on gift exchange)

Section 2 readings (Game theory):

Notes on game theory
Paper 1: On the persistence of strategic sophistication (Instructions)
Slides on Paper 1
Paper 2: Beliefs and endogenous cognitive levels: An experimental study
Slides on Paper 2

Section 3 readings (Nash Equilibrium):

Reference 1, Reference 2, Reference 3

Section 4 readings (Prosocial behavior):

Reference 1, Reference 2, Reference 3 Reference 4, Reference 5

Section 5 readings (Trust):

Reference 1.