Department of Economics

Sanjit Dhami

Professor of economics

Contact Details: Department of Economics, Astley Clarke Building, University Road, University of Leicester, Leicester LE1 7RH, United Kingdom

Email:   Telephone: +44-0116-2522086

Here are some pictures: Picture 1, Picture 2

In Brief

I hold a Masters and PhD (Sept 1997) from the University of Toronto, Canada and an MPhil from the Delhi School of Economics, University of Delhi, India. Before coming to Leicester I was, for 6 years, at the Universities of Essex and Newcastle Upon Tyne. My most recent research is largely in theoretical foundations of Behavioural Economics as well as its applications jointly with my colleague Dr. Ali al-Nowaihi.

It is difficult to judge research if it is not in your area. As a measure of the research impact of my papers, the following might be of some interest.

Some awards and distinctions: Included in Marquis Who's Who in the World. Included in Marquis Who's Who in Science and Engineering in the World, Winner of Commonwealth scholarship for a PhD, Gold Medallist and distinction in MSc Honours in Economics with new University record, Gold Medallist and distinction in BSc Honours in Economics, University of Toronto Open Scholarship and International fee waiver, University merit scholarship in MSc and BSc honours in economics, UGC research fellowship, GOI.

New Book Announcement

Sanjit Dhami "FOUNDATIONS OF BEHAVIORAL ECONOMIC ANALYSIS," forthcoming Oxford University Press in 2015.

This book is intended to be the first, definitive, graduate level treatment of behavioral economics, which I believe to be the future of economics. The book should also be suitable for advanced undergraduate students, researchers working in the field, inter-disciplinary audiences and serious economists and scientists who wish to explore this new and exciting field. The proposed book is a comprehensive, rigorous, and lucid account at the cutting edge of behavioural economics. The proposed length of the book is about a 1000 pages. I strive to strike a balance between theory, evidence and applications. In particular, a strength of the book is that the relevant theory is formally and clearly explained. On reading the book, readers would, I hope, come away with a real sense of how rigorous behavioral economic theory is, how carefully constructured the evidence base now is, how a much clearer picture is emerging of the behavior of humans in economic and non-economic domains, and how strong an alternative framework behavioral economics now offers to economists and other social scientists. In due course, my hope is that the prefix 'behavioral' washes away and this just becomes the normal way in which we do economics. Behavioral economics is young, and it is work in progress. There is a real need to refine the existing models and sharpen the evidence. I hope that the book serves also an invitation to people to join in contributing to this literature.

The book covers the entire corpus of economics. This includes decision making under risk, uncertainty and ambiguity; social preferences and the role of intentions; behavioural time discounting; role of emotions in decisions; behavioural equilibrium concepts in strategic games; behavioural models of learning; judgement heuristics; mental accounting; neuroeconomics; behavioural welfare economics, etc. There is also a wide range of applications of the theory and original, innovative, problems that serve to enhance a deeper understanding of the subject.

The book has been in the making for about a decade. If you would like more information about the book or wish to contribute to the making of the book by reading a part of the book and give me feedback, I invite you to contact me


  1. (2013) An extension of the Becker Proposition to non-expected utility theory, Mathematical Social Sciences, 65: 10-20 (with Ali al-Nowaihi). Science Direct Top 25 Paper.

  2. (2012) Hyperbolic Punishment Functions, Review of Law and Economics (Berkeley Electronic Press Journals). 8: 759–787 (joint with Ali al-Nowaihi).

  3. (2012) 'Behavioral Economics.' in Encyclopedia of Human Behavior, Second edition, Elsevier. (joint with Ali al-Nowaihi)

  4. (2011) Strategic Monetary and Fiscal Policy Interaction and Optimal Institutional Design when there is the Possibility of a Zero Lower Bound on Interest rate(with Ali al-Nowaihi), Oxford Economic Papers. 63: 700-721. Most read Full-Text article in OEP for July 2011 (

  5. (2011) Probability weighting functions. in "Wiley Encyclopedia of Operations Research and Management Science," John Wiley and Sons, New Jersey. (joint with Ali al-Nowaihi)

  6. (2010) Redistributive policy with heterogenous social preferences of voters , with Ali al-Nowaihi, Lead article in European Economic Review, 54 (6), pp. 743–759

  7. (2010) Optimal income taxation in the presence of tax evasion: Expected utility versus prospect theory, with Ali al-Nowaihi. Journal of Economic Behavior and Organization, 75: 313-337.

  8. (2010) The existence of a Condorcet winner when voters have other regarding preferences, (with Ali al-Nowaihi) Journal of Public Economic Theory, 12 (5), pp. 897-922.

  9. (2009) A value function that explains the magnitude and sign effects, (with Ali al-Nowaihi), Economics Letters. 105, 224-229.

  10. (2008) 'A note on the Loewenstein-Prelec theory of intertemporal choice: Corrigendum', Mathematical Social Sciences. 52, 99-108 (with Ali al-Nowaihi.)

  11. (2008) 'The Utility Function Under Prospect Theory', Economics Letters 99, p.337–339 (with Ali al-Nowaihi and Ian Bradley). Science direct Top 25 paper, April June 2008.

  12. (2007) ‘Optimal distribution of powers in a federation: a simple unified framework’, Bulletin of Economic Research 59(3), p. 197-229. (with Ali al-Nowaihi.) Lead article in the journal.

  13. (2007)   'Corruption in a hierarchical asymmetric information game', Journal of Public Economic Theory, 9 (4) pp. 727-755. (with Ali al-Nowaihi).

  14. (2007) 'Why do people pay taxes: Expected utility versus prospect theory', Journal of Economic Behaviour and Organization Vol. 64, pages 171–192. (with Ali al-Nowaihi). Science direct Top 25 paper, April June 2008. Included in the list of 27 articles cited to illustrate the impact of Daniel Kahneman's work for the Global Economy Prize 2011 ( On the reading list for (a) Policy Applications of Psychology and Economics course at Harvard run by Prof. Sendhil Mullianathan (b) EC2030 Economics and Psychology course at Harvard run by Prof. Sendhil Mullainathan. (c) BEE 3017a, The Economics of Tax Evasion course at the University of Exeter by Prof. Gareth Myles. (d) WWS 593D Behavioral economics course run by Prof. Roland Bénabou at Princeton.

  15. (2006) "A Note On The Loewenstein-Prelec Theory Of Intertemporal Choice." Mathematical Social Sciences, Volume 52, Issue 1, Pages 99-108 (with Ali al-Nowaihi). Science Direct Top 25 hottest article for July-Sept. 2006.

  16. (2006)  ‘A simple derivation of Prelec’s probability weighting function’, Journal of Mathematical Psychology, 50 (6), pages 521-524 (with Ali al-Nowaihi.) Science Direct Top 25 hottest article for Oct-Dec. 2006. Many economists might not know much about this journal but this is the top theory journal in psychology and the editorial board has several eminent decision theorists known to economists. It's impact factor is 1.846. Comparable journals in economics have lower impact factor e.g. Journal of Economic Theory (1.224), Games and Economic Behavior (1.33), Economic Theory (0.83).

  17. (2006) ‘A simple model of optimal tax systems: taxation, measurement and uncertainty’, Manchester School, 74 (6), pp. 645-669. (with Ali al-Nowaihi). On the reading list for Prof. Frank Cowell's EC426 MSc Public Economics course at the London School of Economics. Lead article in the journal.

  18. (2004) "An Invitation to Behavioural Environmental Economics" forthcoming in Guljit Arora, Sustainable Development: An Interdisciplinary Perspective (Research and Publishing House: New Delhi). (with Ali al-Nowaihi)

  19. (2003) "The Political Economy of Redistribution Under Asymmetric Information", Journal of Public Economics,  Vol. 87/9-10: 2069-2103. On the reading list for (1) Prof. Thomas Romer’s course Politics 584/Economics 576 Foundations of Political Economy taught at Princeton University. (2) Prof. Martin Hellwig's course 'Political Economy and the Welfare State' taught at the University of Bonn.     

  20. (2002) "Optimal Consumption Taxes And Social Security Under Tax Measurement Problems And Uncertainty", International Tax And Public Finance, Volume 9, Number 6, pp. 673-85.

  21. (2001)  "The Economics of Information" in Jonathan Michie (eds.) 'Readers Guide to the Social Sciences', Vol. I, Fitzroy-Dearborn Publishers. On the reading list for ECGA6450 Microeconomic Development Issues taught at Fordham University.

  22. (2001) "Economics And Politics" in Jonathan Michie (eds.) 'Readers Guide to the Social Sciences', Vol. I, Fitzroy-Dearborn Publishers.


Book Reviews

  1.  (2004) Review of Anderson, T. and McChesney F. S. Property Rights: Cooperation, Conflict and Law, Economic Journal, February 2004, vol. 114, no. 493, pp. F147-F149(1).

  2. (2004) Review of Guljit Arora "Globalisation, Federalism and Decentralisation" in Manpower Journal, Vol. 38, No. 1.


Submitted papers

  1. Dominance concepts for Fehr-Schmidt preferences

  2. Strategic monetary and fiscal policy interaction in a liquidity trap, with Ali al-Nowaihi

  3. Philanthropy, multiple equilibria and optimal public policy, with Ali al-Nowahi


Work in Progress

(I typically include here, only that work which is nearly complete.)

  1. A general theory of time discounting: The reference-time theory of intertemporal choice, with Ali al-Nowaihi.

  2. 'Composite Prospect theory: A proposal to combine prospect theory and cumulative prospect theory.' with Ali al-Nowaihi. To see the longer version, with additional material that we published as a Leicester University working paper click here on the pdf file.

  3. The behavioral economics of the demand for insurance, with Ali al-Nowaihi

  4. Evidential games and evidential equilibrium, with Ali al-Nowaihi (We propose an alternative to the Nash equilibrium in static games of full information).

  5. Prospect theory and pre-trial bargaining, with Ali al-Nowaihi (We explain the differential behavior of plaintiffs and defendants in pre-trial bargaining using prospect theory).

  6. Prospect theory and the economics of crime and punishment, with Ali al-Nowaihi (This is an invited article for the Research Handbook of Law and Economics edited by Judge Richard Posner and Fracesco Parisi. Should be finalized within the next few months.)


2010: FUR conference Newcastle, Royal Economic Society Meetings Nottingham, European Economic Association Meetings Venice.


Current teaching and current PhD students

For the academic session 2011-2012 I will be teaching PhD workshops in behavioral economics; EC7085 (MSc Macroeconomic Theory); EC7094 (MSc Behavioral Finance).

I am supervising four PhD students at the moment: James Cannam, Nargis Hajimoladarvish, Samuel Smithers and Teimuraz Gogsadze, all in the area of behavioral economics.




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Last updated: November 15, 2013
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