Readings for the Second Exam

Risk:

 

**Mark J. MachinaChoice Under Uncertainty: Problems Solved and Unsolved The Journal of Economic Perspectives, Vol. 1, No. 1. (Summer, 1987), pp. 121-154. (Note: Concentrate on the triangle diagram, why indifference curves should be parallel, and how the Allais result shows they are not.)

 

**Charles A. Holt; Susan K. LauryRisk Aversion and Incentive Effects” (in Shorter Papers) The American Economic Review, Vol. 92, No. 5. (Dec., 2002)

 

Coordination:
 

**Van Huyck, John B., Raymond C. Battalio, and Richard O. Biel, “Tacit Coordination Games, Strategic Uncertainty, and Coordination Failure.American Economic Review, 1990, 80(1), pp. 234-48.

**Roberto Weber, “Managing Growth to Achieve Efficient Coordination in Large Groups” AER 96(1) (March 2006). 114-126
 

Time

**Frederick, Shane; George Lowenstein; and Ted O'Donoghue. “Time Discounting and Time Preference: A Critical ReviewJEL, 40(2). (June 2002) 351-401.

 

**Ted O.Donaghue and Matthew Rabin (1999), “Doing It Now or Later.” American Economic Review, 89, 103-124. Only Sections I, II, III, and VII

 

Information

 

**Gary Charness and Dan Levin, "When Optimal Choices Feel Wrong: A Laboratory Study of Bayesian Updating, Complexity, and Affect" American Economic Review, September 2005

 

**Holt, Charlie and Lisa Anderson. “Information Cascades in the Laboratory" American Economic Review, December 1997,  847-862.

 

 

Sex and Beauty
 

**Bertrand, Marianne and Sendhil Mullainathan (2004) "Are Emily and Greg More Employable than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," AER, 94(4), 991-1013.

 

**Markus Mobius and Tanya Rosenbladt, “Why Beauty Matters,” American Economic Review March 2006