Behavioral Economics

2024/2025

Учебный год

ENG

Обучение ведется на английском языке

3

Кредиты

Кто читает:

Департамент теоретической экономики

Статус:

Курс по выбору

Когда читается:

4-й курс, 3 модуль

Преподаватель

Саху Собхагья

Course Syllabus

Abstract

While traditional microeconomics assumes rationality in human behavior, reality often deviates from this assumption. Humans frequently demonstrate psychological biases in their economic choices. This advanced elective course aims to delve into these biases, offering a comprehensive exploration of contemporary behavioral models that explain this 'irrationality'. The focus is on applying these models to understand the economic decisions of individuals, particularly in developing countries. The course unfolds in three segments: first, it presents a broad spectrum of findings from behavioral economics to illustrate real-world economic decision-making; second, it equips students with theoretical frameworks and modeling techniques to analyze these biases; and third, it introduces the emerging domain of 'behavioral' development economics.

Learning Objectives

• Understand key concepts and theories in Behavioral Economics.
• Analyze how psychological factors impact economic decision-making.
• Apply Behavioral Economics theories to real-world economic problems.
• Develop critical thinking skills in the context of economic behavior.

Expected Learning Outcomes

• Inconsistencies in rational choice model
• Bounded Rationality
• Heuristics and Biases
• Mental Accounting
• Prospect Theory
• Availability heuristic
• Representativeness heuristic
• Conjunction Fallacy
• The Law of Small Numbers
• The Gambler’s Fallacy
• The Hot Hand Bias
• Partition Dependence
• Expected Utility Theory
• Measuring Risk Preferences
• Puzzles for Expected Utility Theory
• Expectations-Based Reference Points
• Introduction to Behavioral Economics
• Exponential discounting
• Hyperbolic discounting
• Quasi-hyperbolic discounting

Course Contents

• Introduction
• Role of context in choice
• Beliefs and Expectations
• Choice under Risk and Uncertainty
• Time Discounting and Social Preferences

Assessment Elements

• Homework
• Quiz
• Final Examination

Interim Assessment

• 2024/2025 3rd module
  0.5 * Final Examination + 0.3 * Homework + 0.2 * Quiz

Bibliography

Recommended Core Bibliography

• A course in behavioral economics, Angner, E., 2016
• An introduction to behavioral economics, Wilkinson, N., 2012
• Thinking, fast and slow, 499 p., Kahneman, D., 2013
• Wilkinson, N., & Klaes, M. (2012). An Introduction to Behavioral Economics (Vol. 2nd ed). Basingstoke: Palgrave Macmillan. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1525059

Recommended Additional Bibliography

• Misbehaving. The making of behavioral economics, Thaler, R. H., 2015
• Nudge : improving decisions about health, wealth and happiness, Thaler, R. H., 2009

Authors

• Sakhu Sobkhagia
• Ибрагимбейли Зулихан Хаджи Муратовна
• Мальбахова Диса Анзоровна