Recordings of Independent Interest from the Course Behavioral Economics
Peter P. Wakker
Several (parts of) recordings may be of interest on their own, and can be studied independently, in this (broad) course. Some are listed below. Here is a more extensive
alphabetic list of topics with links.

Ordinal revolution in economics
8 minutes: recording 1.03 (from 1:45 to 9:30); slides 1520
How economics in 1930s chose choicedata as its empirical primitive;
homo economicus; Vienna circle; revealed preference paradigm

Revealed preference
9 minutes: recording 1.04 (0:209:15); slides 2224
How to derive binary preferences from general choices;
weak axiom of revealed preference (WARP)

Risk and expected utility
10 minutes: recording 1.05 (0:009:40); slides 2935
von NeumannMorgenstern behavioral foundation of expected utility;
vNMindependence

Time and discounted utility
12 minutes: recording 1.06; slides 3942
Koopmans’ behavioral foundation of discounted utility;
stationarity; impatience; additive separability

Welfare
9 minutes: recording 1.07 (0:009:22); slides 4347
Harsanyi’s behavioral foundation of utilitarianism
Pareto optimality; (no) equity

Arrow’s voting paradox
5 minutes: recording 1.08 (0:285:30); slides 5053
Also Condorcet paradox

Allais paradox
20 minutes: independent recording
Prevailing violation of expected utility for risk;
violation of independence; most controversial debate on rationality in decision theory

Ellsberg paradox
6 minutes: independent recording (0:006:14)
Prevailing violation of expected utility for uncertainty;
ambiguity

Present bias; time inconsistency
7 minutes: recording 1.11 (0:007:28); slides 6264
Definition, and discussion of rationality;
immediacy effect; overweighting the present

Preference reversals
7 minutes: recording 1.12 (0:007:00); slides 6571
Heaviest blow to classical approach;
scale compatibility

Emotions in game theory
11 minutes: recording 1.13 (0:0011:00); slides 7278
Deviations from Nash equilibrium;
ultimatum game; trust game; fairness; altruism

Biases and heuristics
6 minutes: recording 1.14 (0:005:30); slides 8187
Representativeness heuristic; Linda et al.

Original 1979 prospect theory
22 minutes: recording 2.02 (0:0022:26); slides 96107
Historical meaning & definition;
probability weighting; inverseS; coexistence of gambling and insurance

Chew’s weighted utility
12 minutes: recording 2.03; slides 108113
Betweenness

Gul’s disappointment aversion
11 minutes: recording 2.04; slides 114119
Betweenness

Quiggin’s rankdependent utility
6 minutes: recording 2.05 (0:006:12); slides 120123
Rankdependence;
History; restoration of stochastic dominance; restoration of prospect theory

Biseparable utility
4 minutes: recording 2.05 (6:3710:50); slides 125127
Convenient model for two outcomes;
combines many models for risk, and for ambiguity

Neoadditive utility
11 minutes: recording 2.06 (0:0011:25); slides 128135
Overweighting best and worst outcomes;
very tractable

Critics of prospect theory
2 minutes: recording 2.06 (12:3214:35); slides 138138
Experimental economists; Gigerenzer;
thesisantithesissynthesis

Decreasing impatience & stationarity
12 minutes: recording 2.07 (0:38end); slides 140145
Definitions

Hyperbolic discounting
16 minutes: recording 2.08; slides 145150
Loewenstein & Prelec's (1992) twoparameter model
original, specific, hperbolic model; not the later very broad (mis)use of the term hyperbolic

Quasihyperbolic discounting
7 minutes: recording 2.09; slides 151157
Overweighting the present
betadelta model; very tractable; popularized by Laibson

Unit invariance discounting
15 minutes: recording 2.10 (0:0014:55); slides 157161
Only discount family (in 2023) that can accommodate increasing impatience

FehrSchmidt welfare
10 minutes: recording 3.01 (0:5810:54); slides 166169
Inequality aversion;
very tractable

Kahneman’s experienced utility
3 minutes: recording 3.01 (11:2013:56); slides 171172
Abandons revealed preference;
uses only introspective experiences directly at moment of experiencing

Happiness
2 minutes: recording 3.01 (13:5617:25); slides 173174
Abandons revealed preference;
uses introspective judgments of happiness

Prospect theory  improving QALYs
8 minutes: recording 3.04 (0:198:10); slides 223225
Prospect theory improves qualityoflife measurements

Prospect theory  insurance
3 minutes: recording 3.04 (8:1111:28); slides 226227
Prospect theory turns insurance upside down

Arbitraging time inconsistency
4 minutes: recording 3.05 (0:144:19); slides 230230
Pumping money (arbitrage) out of time inconsistency

Naive versus sophisticated
8 minutes: recording 3.06 (0:007:56); slides 233241
Procrastination under sophistication and naivety

Decoy effect
5 minutes: recording 3.08 (0:566:08); slides 251254
Violating weak axiom of revealed preference;
context effect; decoy/attraction/asymmetricdominance effect

Compromise effect
2 minutes: recording 3.08 (6:087:58); slides 255257
Violating weak axiom of revealed preference;

Endowment effect
9 minutes; recording 3.09; slides 260264
Loss aversion; WTPWTA discrepancy