We will cover Section 2: Social Norma of my paper on The Empirical Evidence Against Neoclassical Utility Theory, A Survey of the Literature. This section shows that human behavior is for more complex than economists undersand. Many complex and conflicting emotions play a role in our daily decisions. The paper is attached below.
2.2 Public Goods & Free Riding
Sample Question for Final
1. Write down the tree diagram of the Beard-Beil Game discussed in lecture. Solve the game using standard game-theory, and write down four predictions made by game theory about the outcome of the game.
2. Describe the empirical evidence about what really happens when this game is played by real human beings, and show that the empirical evidence contradicts all four predictions.
3. Explain the REASONS for the difference between the theoretical predictions and the real world observations.
AM19 Behavioral Game Theory - 1hr Video Lecture