UCL Department of Economics


ECONG038 - Topics in Economics and Psychology

This course is about the challenges that economic theorists face in their quest for economic models in which decision makers have a "richer psychology" than prescribed by textbook models. The enrichment takes two forms: (i) broadening the set of considerations that affect decision makers' behavior beyond simple, material self-interest; (ii) relaxing the standard assumption that agents have unlimited ability to perceive and analyze economic environments, and that they reason about uncertainty as "Bayesian statisticians". Special emphasis will be put on the implications of "psychologically richer" models on market behaviour.


  • To provide MSc Economics students with a presentation of a selection of tools for modelling economic agents with “rich” psychology
  • To give students tools for carrying out their own theoretical investigations involving incorporation of non-standard psychological factors in economic models
Taught by:
Philippe Jehiel, Ran Spiegler
Assessment: 2 hours of lectures per week, plus four 2-hour classes with written assignments. The course will be examined by a written exam in Term 3.
Suitable for:
Graduate students
Prerequisites: ECONG021
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