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w17: Behavioural economics III /2548

Topic 3

Lecture handout

w17: behavioural economics III – Basic concepts – preference construction

larger diagram 1 / larger diagram 2 [pdf]

Main reading

Ariely, D (2009), Predictably irrational – The hidden forces that shape our decisions (revised ed), London: Harper

Benson, B (2016), Cognitive bias cheat sheet, better humans [blog], Sept 1st – see Wikipedia’s list of cognitive biases and the graphic cognitive bias codex

Camerer, C and Loewenstein, G (2004), Behavioral Economics: Past, Present and Future [pdf], in Camerer, Loewenstein and Rabin (eds) (2004), Advances in Behavioral Economics, New York: Princeton University Press

Erta, K et al (2013), Applying behavioural economics at the Financial Conduct Authority, FCA Occasional Paper No.1, April

Tversky, A and Kahneman, D (1981), The framing of decisions and the psychology of choiceScience [New Series], Vol. 211, No. 4481. (Jan. 30), pp. 453-458

Wilkinson, N and Klaes, M (2012), An Introduction to Behavioral Economics (2nd ed), Basingstoke: Palgrave-MacMillan