Description

Overview:
This lesson discusses why and how consumers make certain choices.  Based on standard neoclassical theory, students are introduced to the concept of utility, budget constraints, and indifference curves.  Given market prices and utility information, students will understand the implicit thought processes that lead to total utility maximization.  In cases when individual behaviors do not adhere to the predictions of standard economic theory, the lesson employs behavioral economics to explain how and when consumer choices might be different under certain conditions including limited information, psychological pricing, bounded rationality, nudges, and loss aversion. 
Subject:
Economics
Material Type:
Module
Provider:
Ohio Open Ed Collaborative
Date Added:
05/03/2019
License:
Creative Commons Attribution-NonCommercial 4.0 Creative Commons Attribution-NonCommercial 4.0
Language:
English
Media Format:
eBook, Text/HTML

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