As opposed to the conventional over-simplified assumption of self-interested individuals, strong evidence points towards the presence of heterogeneous other-regarding preferences in agents. Incorporating social preferences – specifically, trust and reciprocity - and recognizing the non-constancy of these preferences across individuals can help models better represent the reality.

This course is part of the SDG initiative addressing the UN Sustainable Development Goals, specifically for the following SDGs [1, 8, 10 and 16].