LUBS3375
Module Reading List

Reading

The readings are an essential part of the course. Lectures will help you understand the readings as well as providing additional information and applications. The main textbook of the course is Wilkinson and Klaes (2012), “An introduction to Behavioral Economics” (2nd Edition), Palgrave Macmillan.   

Individual journal articles will also be referred to occasionally (see topic by topic list below).

A separate list of journal articles will be indicated for students' presentations at the tutorials.  

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Lecture 1. Behavioural economics: introduction

• Wilkinson and Klaes (2012), Chapter 1, Chapter 2 (only section 2.2), Chapter 3 (only sections 3.1, 3.2 & 3.3).
• Camerer, C. F. and Loewenstein, G. (2003). Behavioral Economics: Past, Present, Future. In Camerer, C., Loewenstein, G., and Rabin, M., editors, Advances in behavioral economics ISBN: 0691116822 (pbk. : alk. paper); 0691116814, The Roundtable Series in Behavioral Economics, chapter 1, pages 3-51. Princeton University Press (Optional reading).

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Lecture 2 & 3. Decisions under risk

• Wilkinson and Klaes (2012), Chapter 5 (excluding section 5.8 & 5.9)  

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Lecture 4.  Intertemporal choice: discounted utility model and anomalies, self-control problems, hyperbolic discounting

• Wilkinson and Klaes (2012), Chapter 7 & Chapter 8 (only sections 8.2, 8.3 & 8.7)  
• Frederick, S., Loewenstein, G., and O'Donoghue, T. (2002). Time discounting and time preference: A critical review. The journal of economic literature. ISSN: 0022-0515, 40(2):pp. 351-401 (Optional reading).

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Lecture 5 & 6. Fairness and Social preferences

• Wilkinson and Klaes (2012), Chapter 10.  
• Fehr, E. and Fischbacher, U. (2004). Third-party punishment and social norms. Evolution and Human Behavior, Volume 25, Issue 2, 63-87 (only pages 63-72)  
• Levitt, S. D. and List, J. A. (2007). What Do Laboratory Experiments Measuring Social Preferences Reveal about the Real World? The journal of economic perspectives. , 21(2):pp. 153-174 

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Lecture 7 . Nonstandard beliefs: limits of Bayesian updating, overconfidence, projection bias, law of small numbers

• Wilkinson and Klaes (2012), Chapter 4.  

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Lecture 8. Nonstandard decision-making: framing, limited attention, suboptimal heuristics, emotions

• Wilkinson and Klaes (2012), Chapter 3 (only section 3.4), Chapter 6 (only p238-239)  
• George Loewenstein (2000). "Emotions in Economic Theory and Economic Behavior," American Economic Review, vol. 90(2), pages 426-432, May.  
• Jon Elster (1998). Emotions and Economic Theory. The Journal of Economic Literature. ISSN: 0022-0515, 36(1), 47-74 (Optional reading). 

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Lecture 9. Endogenous preferences, nudge theory, welfare and policy implications

• Wilkinson and Klaes (2012), Chapter 6 (only pages 246-249), Chapter 11 (only sections 11.5 & 11.7)  
• Loewenstein, G. & Angner, E. (2003). Predicting and indulging changing preferences. In G. Loewenstein, D. Read, and R. Baumeister. (Eds.). Time and decision : economic and psychological perspectives on intertemporal choice ISBN: 0871545497 (pp. 351-391). New York: Russell Sage Foundation Press. Available online: https://www.andrew.cmu.edu/user/gl20/GeorgeLoewenstein/Papers_files/pdf/PredictingIndulging.pdf  
• Samuel Bowles (1998).Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions. The journal of economic literature. ISSN: 0022-0515 36 (1998): 75-111(Optional reading).  

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Lecture 10. Overview, review and feedback

This list was last updated on 24/10/2019