Subject Syllabus
CB-802 (A) - Behavioral Economics
CSBS · Semester 8
Course Modules
Learn topic-wise with Hyper AI and revise using mapped PYQs.
Basics of choice theory: Revisiting the neoclassical modelutility in economics and psychologymodels of rationalityconnections with evolutionary biology and cognitive neurosciencepolicy analysis - consumption and addiction, environmental protection, retail therapyapplications - pricing, valuation, public goods, choice anomalies
Beliefs, heuristics and biases: Revisiting rationalitycausal aspects of irrationalitydifferent kinds of biases and beliefsself-evaluation and self-projectioninconsistent and biased beliefsprobability estimationtrading applications - trade in counterfeit goods, financial trading behavior, trade in memorabilia Choice under uncertainty: Background and expected utility theoryprospect theory and other theoriesloss aversionmarginal utilitydecision and probability weightingapplications - ownership and trade, income and consumption, performance in sports.
Intertemporal choice: Geometric discountingpreferences over timeanomalies of inter-temporal decisionshyperbolic discountinginstantaneous utilityalternative concepts - future projection, mental accounts, heterogeneous selves, procedural choicepolicy analysis - mobile calls, credit cards, organization of governmentapplications - consumption and savings, clubs and membership, consumption planning
equilibrium in pure and mixed strategies, iterated games, bargaining, signalling, learningapplications - competitive sports, bargaining and negotiation, monopoly and market entry.Individual preferencesChoice anomalies and inconsistenciessocial preferencesaltruismfairnessreciprocitytrustlearningcommunicationintentiondemographic and cultural aspectssocial normscompliance and punishmentinequity aversionpolicy analysis - norms and markets, labor markets, market clearing, public goodsapplications - logic and knowledge, voluntary contribution, compensation design.