The main reading for this lecture, and perhaps the following is the Hill and Myatt Anti=Textbook, Chapter 4 on Consumer Theory, from pages 74 to 92. We will study how the reallity of consumer behavior differs dramatically from the theory presented in economics textbooks.
SAMPLE FINAL QUESTION:
Three concepts are mentioned in the chapter: Endogenous Preferences, Asymmetries in Information, Social Preferences. For each one, DESCRIBE how economic theory says that human beings behave and CONTRAST it with how human beings ACTUALLY behave in light of the THREE concepts -- three DIFFERENT comparisons are called for here. EXPLAIN how economic theory fails to describe the correct behavior, and also explain WHY it matters, especially for S&D theory.
WEA Pedagogy Post: Behavioral VS Neoclassical Economics - How actual human behavior is in dramatic conflict with predictions of utility maximization
Preference Pollution: David Lloyd George. - How Markets Create the Desires We Dislike - members of AZ Research Group can get access
Empirical Evidence Against Neoclassical Utility Theory - Review of the Literature (Asad Zaman & Mehmet Karacuka)
AM05 Consumer Theory - Lecture based on Chapter 4 of Hill & Myatt, explains four major problems with conventional consumer theory found in economics textbooks.