Directions and material for teaching from
" Prospect Theory for risk and Ambiguity" by Peter P. Wakker (2010), Cambridge University Press, Cambridge
ISBN 13: 9780521748681

The material provided here was used in my course Nov-Dec 2012. It is for seven meetings of 2.5 hour (9:30-12:00 AM) for masters students economics.

  1. 1st meeting:
    My notes for white-board presentation of 1st meeting; pdf file
    My notes for white-board presentation of 1st meeting; MS-Word file
  2. 2nd meeting: My (handwritten, scanned) notes for white-board presentation of 2nd meeting (for whatever these are worth).
    It is best to do §4.1 in class at an early stage, before the theory of Ch. 4 comes. Can well be in 2nd meeting (if not 1st). Let them do this in class, with break or end of meeting to follow after, so that fast need not wait for slow. Check for every student that a0-a4 are not nonsensical. Check for every student that they do g and G right in Figures 4.1.2 (many erroneously take g = 1.5 times a1 iso g = 1.5 times a4). Let them do this in class because important for later data analysis that there are no confusions.
    They often forget book. Best to give separate printouts of the material:
    Figures 4.1.1-4.1.5 as pdf file
    Figures 4.1.1-4.1.5 as MS-Word file
  3. 3rd meeting. My (handwritten, scanned) notes for white-board presentation of 3rd meeting
    Let them work on Exercises of Section 4.3, but best not to let them work from book (where they will search for solutions of exercises in the back of the book), but give separate printouts of the material that temnporarilty cover up that the solutions are at the back of the book:
    Exercises of Section 4.2 as pdf file
    Exercises of Section 4.2 as MS-Word file
    Powerpoint slides to explain tradeoff consistency. First part of 4th meeting may be moved up to here, time permitting.
  4. 4th meeting My (handwritten, scanned) notes for white-board presentation of 4th meeting
    Powerpoint slides for Ch. 5, deriving RDU using figures. First part may already be presented at 3rd meeting.
  5. 5th meeting My (handwritten, scanned) notes for white-board presentation of 5th meeting
    Powerpoint slides for Ch. 5, definition of inverse-S.
    On presentation of decision weights of a ranked probability: Whereas in writing it is better to define the decision weight of a ranked probability first in general and only then for a specified prospect (as written in the book), for presentation in class it is better to define the decision weight immediately for the ranked probability in a prospect, because in class you can accompany the white-board writing with words.
  6. 6th meeting My (handwritten, scanned) notes for white-board presentation of 6th meeting
  7. 7th meeting My (handwritten, scanned) notes for white-board presentation of 7th meeting

Time table & homework
MS-Word file
Pdf file