Behavioural economics teaching resources

Open lecture slides from ECON3111 Behavioural Economics: foundations and rational choice under certainty, and choice under risk and uncertainty.

Selected lecture decks from ECON3111. Shared for study and reference. Please cite appropriately and do not redistribute commercially.

• Lecture 1

  Foundations and rational choice under certainty

  The neoclassical benchmark and why it matters; descriptive against normative theories; preferences as relations; completeness and transitivity; and where behavioural evidence comes from. Includes worked activities and a validity map of methods.

  Slides (PDF)

• Lecture 6

  Advanced choice under risk and uncertainty

  Expected utility as a benchmark and the independence axiom; the Allais and Ellsberg paradoxes; probability weighting; prospect theory, covering reference dependence, loss aversion and weighted probabilities; and ambiguity with multiple priors. Includes worked numerical examples and exam practice.

  Slides (PDF)

Related reading

The writing covers several of these ideas in plain language, including the certainty effect, the Allais paradox, the Ellsberg paradox, loss aversion and risk against ambiguity.