Advanced Decision Theory
ECON 2062
Subject & Catalog Number
Course Information
Description
We will focus on three areas: (1) Stochastic Choice Theory: random utility models used in discrete choice econometrics and IO, as well as models of random perception and cognition used in psychology and behavioral economics. (2) Statistical Decision Theory: the Wald’s model, admissibility, minimax regret and Bayesian regret, the potential outcome model, with connections to the ambiguity literature and model misspecification literature. (3) Non-Bayesian Updating: We will discuss axioms for belief updating rules and various functional forms that capture updating biases observed by behavioral economists. Prerequisites: liking math and understanding basic microeconomic theory at the level of MWG.
Available for Harvard Cross Registration
NOTE: This course requires additional sections; you will be prompted to choose secondary components during the Add to Cart process
