This course uses tools from economics and psychology to address individual decisions which are hard to account for with traditional, rational economic theory. Using both theoretical and laboratory methods, students explore topics involving both bounded rationality and bounded self-interest. These topics include the influence of altruism, trust, and emotion in economic decisions and alternative explanations for 'irrational decisions': choice anomalies, bias in risk attitudes, and heuristics. Students participate in and develop controlled experiments to examine these issues empirically.
Prerequisites: ECON 170