Wednesday October 5: abstract/proposal due. This should be
between a
paragraph and a page. You should talk to one of us before this deadline
to discuss possible topics.
Wednesday October 19: final proposal due. This should be a couple
of
pages with a more detailed abstract and plan for the paper. You should
talk to one of us about the abstract before preparing the final proposal
Monday November 28: deadline for determining the paper you will
referee
Monday December 5: deadline for turning in referee report
Wednesday December 14: Paper due
all assignments should be submitted by email by 10 pm on the date
due
Levine: 8/31-10/3: 8 lectures (no class Sept 5 [labor day] and also
no class Sept 7)
Dynamic Games Repeated games, long-run and short-run players, folk theorems, reputation, public and private information
1. Standard models: deterministic choice, preference, utility
D. M. Kreps. Notes on the Theory
of
Choice. Westview Press, 1988. Chapters 1-3. 1.1 Applications M. K. Brunnermeier and J. A. Parker. Optimal expectations. American Economic Review,
95(4):1092–1118, September 2005.
B. Koszegi and M. Rabin. A model of reference-dependent preferences. The Quarterly Journal of Economics,
121(4):1133–1165, 2006.
F. Gul and W. Pesendorfer. The revealed preference implications of
reference dependent preferences. Working Paper, Princeton University,
December 2006.
2. Context-dependent choice and relaxations of the weak axiom
2.1 Deterministic choice models
A. Rubinstein and Y. Salant. A model of choice from lists. Theoretical Economics, 1(1):3–17,
March 2006.
P. Manzini and M. Mariotti. Sequentially rationalizable choice. American Economic Review,
97(5):1824–1839, 2007.
Y. Masatlioglu, D. Nakajima, and E. Ozbay. Revealed attention. Working
paper, University of Michigan, 2009.
E. Ok, P. Ortoleva, and G. Riella. Revealed (P)Reference Theory.
Working Paper, July 2010.
V. Cherepanov, T. Feddersen, and A. Sandroni. Rationalization. Working
paper, November 2010.
2.2 Random choice models R. D. Luce. Individual Choice Behavior: a Theoretical Analysis. Wiley New York, 1959.
A. Tversky. Choice by elimination. Journal of mathematical psychology, 9(4):341–367, 1972.
A. Tversky. Elimination by aspects: A theory of choice. Psychological Review, 79(4):281–299, 1972.
D. McFadden. Conditional logit analysis of qualitative choice behavior.
In P. Zarembka, editor, Frontiers in Econometrics, chapter 4, pages
105–42. Academic Press, New York, 1974.
R. D. Luce. The choice axiom after twenty years. Journal of Mathematical Psychology, 15(3):215–233, 1977.
S. Anderson, A. De Palma, and J. Thisse. Discrete choice theory of product differentiation. MIT Press, 1992. Chapters 1-2.
F. Gul, P. Natenzon, and W. Pesendorfer. Random choice as behavioral
optimization. Working Paper, Princeton University, October 2010.
2.3 Similarity and context-dependent choice A. Tversky and J. Edward Russo. Substitutability and similarity
in binary choices. Journal of Mathematical Psychology, 6(1):1–12, 1969. A. Tversky. Features of similarity. Psychological Review, 84(4), 1977.
J. Huber, J. W. Payne, and C. Puto. Adding asymmetrically dominated
alternatives: Violations of regularity and the similarity hypothesis.
Journal of Consumer Research, 9(1):90–98, 1982.
A. Rubinstein. Similarity and decision-making under risk. Journal of Economic Theory, 46(1):145–153, 1988.
A. Rubinstein. Modeling Bounded Rationality. The MIT Press, Cambridge, Massachusetts, 1998. Chapters 1-2.
P. Natenzon. Random choice and learning. Job Market Paper, Princeton
University, 2010.
3. Dynamic choice, temptation and preference for commitment
D. M. Kreps. Notes on the Theory
of
Choice. Westview Press, 1988. Chapter 13.
R. H. Strotz. Myopia and Inconsistency in Dynamic Utility Maximization.
Review of Economic Studies,
23(3):165–180, 1956.
F. Gul and W. Pesendorfer. Temptation and self-control. Econometrica, 69(6):1403–1435,
November 2001.
F. Gul and W. Pesendorfer. Self-control and the theory of consumption. Econometrica, 72(1):119–158,
January 2004.
J. E. Stovall. Multiple temptations. Econometrica,
78(1):349–376, 2010.
P.
Krusell, B. Kuruscu, and A. A. Smith. Temptation and taxation. Econometrica, 78(6):2063–2084,
2010. B. Lipman and W. Pesendorfer. Temptation. Working paper, April 2011.
4. Choice under risk and Prospect Theory
D. M. Kreps. Notes on the Theory
of
Choice. Westview Press, 1988. Chapters 4-9.
D. Kahneman and A. Tversky. Prospect theory: An analysis of decision
under risk. Econometrica,
47(2):263–291, 1979.
A. Tversky and D. Kahneman. Advances in prospect theory: Cumulative
representation of uncertainty. Journal
of Risk and Uncertainty, 5(4):297–323, 1992.
Peter P. Wakker. Prospect Theory for
Risk and Ambiguity. Cambridge University Press, 2010. Chapter 9.
N. Barberis. A Model of Casino Gambling. Working Paper, Yale
University, June 2011.
E. Azevedo and D. Gottlieb. Risk-neutral firms can extract unbounded
profits from consumers with prospect theory preferences. Journal of Economic Theory,
forthcoming.