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Econ 219B, Applications of Psychology and Economics

Spring 2008

Lecture: W 12-3P , 639 Evans
Instructor: Professor S. DellaVigna
Office: 515 Evans
E-mail: sdellavi@econ.berkeley.edu
Office Hours: TH 12n-2pm

Reading List

Lecture Notes

  • 01/23/08: Lecture 1 - Psychology and Economics: The Topics, Empirical Methods, The Fields; Defaults and 401(k))
  • 01/31/08: Lecture 2  - (Please note correction 2008 not 2007) Default Effects and 401(k)s, Present Bias: Default Effects,
    Consumption, Homework
  • 02/06/08: Lecture 3  - Financial Education, Present Bias: Health-Club Industry, Credit Card Industry, Consumption and Savings
  • 02/13/08: Lecture 4 - Leisure Goods: Commitments and Savings, Five More Applications of Present Bias, Present Bias: Summary, Methodology: Errors in Applying Present-Biased Preferences, Reference Dependence: Introduction, and Endowment Effect
  • 02/20/08: Lecture 5 - Reference Dependence:  Endowment Effect II, Metholodogy:  Effect of Experience, Reference Dependence:  Labor Supply - A Model, Labor Supply - The Evidence, Reference Dependence Insurance

  • 02/27/08: Lecture 6 - Reference Dependence:  Housing, Disposition Effect, Equity Premium, Employment and Effort

  • 03/05/08: Lecture 7 - Social Preferences:  Introduction, The Workplace, Gift Exchange in the Field, Social Preferences:  Charitable Giving, Methodology:  Field Experiments
  • 03/12/08: Lecture 8 - Non-Standard Beliefs, Overconfidence, Law of Small Numbers and Projections Bias 
  • 03/19/08: Lecture 9 - Non-Standard Decision-Making, Attention:  Introduction, Simple Model, eBay Auctions, Taxes, Financial Markets and Methodology:  Portfolio Methodology
  • 04/02/08: Lecture 10 - Menu Effects:  Introduction, Excess Diversification, Choice Avoidance, Preference for Familiar and Preference for Salient
  • 04/09/08: Lecture 11 - Menu Effect:  Confusion, Human Subjects Approval, Social Pressure and Persuasion
  • 04/16/08: Lecture 12 - Social Pressure II, Emotions:  Mood and Arousal, Methodology:  Lab and Field and Market Reaction to  Biases:  Introduction
  • 04/23/08: Lecture 13 - Market Reactions to Biases:  Introduction, Pricing, Intro to Problem Set, Market Reactions to Biases:  Behavioral Finance
  • 04/30/08: Lecture 14 - Market Reactions to Biases: Behavioral Finance, Corporate Decision, Employers, Political Economy and Welfare Response to Biases, Methodology:  Markets and Non-Standard Behavior, Summary and Evidence, and Concluding Remarks


Problem Sets

Past Final Exam