PIA 2202: Behavioral Economics and Game Theory
|UNIVERSITY OF PITTSBURGH|
Announcement (4/3): Solution to HW 4 is posted.
Submit HW through Courseweb
|Instructor:||Prof. Sera Linardi|
|E-mail /Phone:||linardi / 412.648.7650|
|Lecture hours:||Tuesday 12-3 pm|
|Lecture hall:||3800 WWPH|
|Regular Office Hours:|
Tuesday 2:50-3:50pm, Thursday 11-12pm.
Monday 11-1pm in the Student Lounge
Sharpen and systematize your understanding of incentives and psychological motivation
Identify and model strategic issues in real world cases in public and international affairs
|3||Communicate your analysis in a compelling and concise manner|
Dixit, Avinash K. Susan Skeath (DS), and David Reiley. Games of Strategy (3rd edition), Norton (DS)
Thaler, Richard H. and Cass R. Sunstein. Nudge: Improving Decisions About Health, Wealth, and Happiness, Penguin. (Nudge)
We will post additional readings week to week -- please check back every week
This is a draft syllabus -- we will adjust the syllabus to keep pace with the class and student interest.
Prerequisite: this class utilizes some basic quantitative methods (algebra and derivatives). Please contact the TA to schedule a review session at your earliest convenience if you are not comfortable with these concepts.
|The breakdown is as follows:|
55% Homeworks: 10% each (4 regular homeworks) + 15% on HW 5 (24-hour take home final)
20% Exams: quiz 5%, midterm: 15%
25% Project: midterm presentation: 5%, final project: 20%
Regular homework: All homework assignments are due at 12pm on the day of class through Courseweb. You can turn in a Word doc or a pdf file. As long as you are very neat, you can draw and label figures and graphs by hand and scan it. HW can be discussed in groups but must be written up individually. Note that plagiarism is taken very seriously at GSPIA.
We have learned by experience that accepting late submission quickly turns into a slippery slope so we will not accept anything posted after the deadline unless it is a freebie (see below), so plan your submission accordingly. If you are not sure how to submit assignments online, ask the TA early.
You will be given one freebie this semester, which means that you can turn in one regular homework set 5 days late, no questions asked. For the freebie: submit an empty file with the title “Freebie” instead of your homework at 9am on the day of class through Courseweb. You then have until 9am five days from then (i.e. 9am the following Sunday) to make another submission of your actual homework file. Use this wisely and only for emergencies such as illness. This 9am deadline five days after class will be enforced strictly since solutions are posted that afternoon. Graded freebies are returned a week later.
Exams: since all the concepts build on top of each other, all exams are cumulative. The quiz will be short (10-20 minutes) and consist of multiple-choice questions taken online. We will review the results in class immediately afterwards to assess how the class as a whole is doing. The Midterm is 90 minutes. The Final is a one-day (24 hour) homework assignment. You will pick up the questions in class and do the first 3 hours in class with us and have a chance to ask for clarification. You submit what you have at the end of the 3 hours, and then can continue revising your answers at home and submit it digitally by noon at the latest the next day. Both exams will consist mostly of open-ended questions.
Project: the bulk of your grade will come from your research project. You will present the idea and preliminary analysis of your project to the class for input in the middle of the semester. This is worth only a small fraction (5%) of your grade and is intended to get you started early on your project. Your final project itself is due at the end of the semester (20%)
For all of your work, note that Courseweb has a built-in plagiarism checker that tells us how much of your writing is original.
When you feel that mistakes have been made in determining the grade of your assignment or exams, we are happy to regrade them. Here are the steps to take:
|1||Please compare your answers to the posted solutions.|
Please submit a written request stating your reasons for a regrade. If there are specific questions/answers that you want to explain, please do so. Submit the requests to me (Sera) at class or office hours, or you can drop it off with the administrative assistant for the class (Susan Sawyers).
I will regrade the ENTIRE assignment. This may result in a higher or lower grade than your original grade.
Week 1 (1/9) Overview and intro to decision theory
Axioms of rationality (completeness, transitivity, IIA), utility function, value elicitation (BDM, 2nd price auction), probability (Bayes), risk preferences, Allais paradox & Asian disease problem
|Reading: Decision Theory, Hansson S.O (p.13-49)|
|Risk preferences (DS Appendix to 7), Bayes rule (DS Appendix to 9)|
(If you have the 4th edition, please read P.335-341)
Week 2 (1/16) From rational to behavioral
|Reading||Eliciting risk preferences: DOSPERT|
|Holt and Laury MPL|
|Comparing different methods|
|Prospect theory (brief is fine)|
Homework 1 assigned (posted in here Tuesday night, upload on Courseweb)
|Homework 1 Solutions:|
Week 3 (1/23) Nudge & Predictably Irrational (class), lecture: time discounting
|HW 1 due|
|Sign up to discuss the topics in Week3 Presentation tab|
|Presentation reading materials here:|
|Time discounting (brief is fine)|
|Start thinking about case study|
Week 4 (1/30) Simultaneous move games, mixed strategy, and coordination
Susan Dorff from Pitt’s Innovation Institute coming to talk about Randall Family Big Idea Competition student pitch competition ($100k in prizes).
GSPIA students have won this in the past.
Email: firstname.lastname@example.org for info
|Reading: DS Ch 4|
|Mixed strategy only DS 7.4 and DS 7.7, and 8.1|
|Coordination DS 9.3 only|
|Homework 2 posted||https://www.dropbox.com/s/w5m4cc5azg5p9ss/HW2_2018.docx?dl=0|
|Homework 2 Solutions|
Week 5 (2/6) Sequential games
Sera's homeless shelter savings field experiment
|HW 2 due||Reading: DS Ch 3|
Week 6 (2/13) Information asymmetry: signaling games
Reading: DS 6 Putting simultaneous & sequential together, DS 9 Signaling games (Ch8 for the 4th edition)
|Homework 3 assigned|
|Sera's SITE presentation:|
The paper (ideal and predicted savings)
Homework 3 mappings for the 4th edition:
|Ch6 U6 >> Ch6 U6; Ch6 U12 >> Ch6 U12; Ch9 U8 >> Ch8 U8|