14.13 Psychology and Economics
14.13 Psychology and Economics (Spring 2020, MIT OCW). Instructor: Prof. Frank Schilbach. Psychology and Economics (aka Behavioral Economics) is a growing subfield of economics that incorporates insights from psychology and other social sciences into economics. This course covers recent advances in behavioral economics by reviewing some of the assumptions made in mainstream economic models, and by discussing how human behavior systematically departs from these assumptions. Applications will cover a wide range of fields, including labor and public economics, industrial organization, health economics, finance, and development economics. (from ocw.mit.edu)
| Lecture 07 - Risk Preferences I |
In this video, Prof. Schilbach describes how economics looks at risk preferences, that is, choices involving risk. Specifically, he covers the topics of risk aversion, expected utility, absurd implications, and small- vs. large-scale risk aversion.
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