Lecture Slides in Experimental Economics

Part of the MIT OpenCourseWare site, this page supports a 2004 course on economics and psychology. The course integrates psychological insights into economic models of behaviour. It discusses the limitations of standard economic models and surveys the ways in which psychological experiments have been used to learn about preferences, cognition, and behaviour. It includes a syllabus, list of readings, lectures slides / handouts, details of assignments and problem sets.

PowerPoint presentation depicting decision-making under risk, showing how risk attitudes can be examined using choices among lotteries or willingness to pay for insurances. Shows how risk attitudes can be captured in convexity of the indifference curve or strict concavity of the utility function; and how risk aversion can be quantified by the ratio of second and first derivatives of the utility function, implying that it falls as wealth increases.