Study Notes from Class Discussion

Quizzes will be published in advance, with advance work allowed.
Due dates for quizzes will be announced one or two class days beforehand, likely on the same day as the quiz.

The introductory module is complete and contains:
- PowerPoint presentations
- Lectures
- Assignment answers
- Review guide
Modules are published when the class starts and updated throughout the course.
Neoclassical assumptions were discussed in class.

"Mind Over Money" assignment is due online.
Upcoming quiz on "Impossible Assumptions" is scheduled for Wednesday, with more details to be provided on Monday.
Practice assignment will be available until Friday.
Midterm adjustments will allow for extended due dates where applicable.
Upcoming behavioral preferences assignment and quiz will follow.

Quizzes are handed back in class for practice; students can collect individually to avoid a long line.
Emphasis on getting students comfortable and familiar with the class environment during collection.
Recognition of students' names to facilitate returns.

Nudges concept discussed: making it easier for students to retrieve assignments.
Discovery of personal preferences (likes, dislikes, indifference) discussed as foundational to economics.

Neoclassical economists assume individuals know their preferences and make choices based solely on those preferences.
Behavioral economics posits that individuals can be intentionally or unintentionally influenced in their decision-making.

Preferences refer to likes, dislikes, or indifference impacting choice decisions.
- Completeness: Every option is ranked either higher, lower, or equally (compared to other choices).
- Transitivity: If A > B and B > C, then A > C (consistent preference order).
- Reflexivity: Individuals retain consistent preferences over time, although preferences can evolve.
Cancellation: Overlooking certain factors that do not alter the choice (e.g., ignoring external weather conditions when making decisions).

Concept explained using variables (X and Y).
- If choice X is better than choice Y in at least one aspect and equal in others, choice X should be preferred.
- Example: Choosing a blanket when it is rainy because it is preferable over a sweatshirt in that context.

Extensionality: Value remains the same regardless of how a choice is described, as long as the descriptions are equivalent.
- Example: 80% pass rate equals 20% fail rate (different framing does not alter choice).
Invariance: Presentation of choices (e.g., choice display) should not affect decisions if no indifference exists.
- Example: Choosing a gaming console based on inherent preference rather than flashy displays.

Economists assume that chosen items reflect individual value preferences.
- Example: A student is enrolled in the class because they value the course, whether as a requirement or out of interest.
Utility maximization: The goal is to achieve the highest level of happiness possible. Bounded rationality plays a role in decision-making processes.

Emphasis on exploring students’ experiences regarding high and low expectations impacting choices.
Discussion on student feelings about various experiences in relation to expectations.

Experiment involving preference between alkaline water and regular drinking water was outlined, noting how expectations affect taste perception.
Cash discussed using visual marketing techniques and assumptions about brand value affecting consumer choice.
Practical examples tied to health claims and presentation styles for products discussed through a consumer choice lens.

Results indicated a slight preference for regular drinking water over alkaline water.
Students were tested for preferences, yielding varied results based on how the water was presented or perceived.
Students encouraged to reflect on their choices to understand the underlying influence of branding and marketing strategies.