rationality transactions costs and behavioral economics you are to take one of these topics and write a short paper

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Rationality. Discuss each of the three possible meanings, where they came from, and their purpose. What are the criticisms and what is the evolution of the economic meaning? You must discuss the components of each variant and place them in the context of economic analysis and prediction. There may be no predictive purpose in which you should state so

Transactions costs. Discuss the definition and economic meaning of this topic. What are the components of transactions costs? Then choose one of the three examples—contractual opportunism, principal-agent issues, or information asymmetries. Describe your choice and discuss the elements and consequences of it. Then provide a real-world example of a situation where you would observe your chosen transactions cost.

Behavioral economics. Define the term and discuss how and why it evolved. Discuss the elements and consequences of this school of thought. Then choose one of the bullet points that shows an example. Explain it and provide a real-world example.

Good writing structure, as explained in class, is required. Grammar, spelling, logical flow, sentence and paragraph structure, the use of subheadings, etc. You are encouraged to use the Writing Center if you have any doubts concerning a draft.

Proper citation is mandatory. You didn’t invent any of this so you must cite. I will give special attention to those who do outside research on their topic. That shows effort and curiosity. But PARAPHRASE. I need to gauge your understanding. Also, any “pedia” is not an accepted source. On this subject matter the articles are often wrong.

there is no required length. I may suggest a range that I think is appropriate to the task. In this case 2-3 pages is probably in the ballpark but make It as long or short as necessary to provide a concise but thorough paper.

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