Master
2021/2022
Behavioral Economics
Type:
Elective course (Applied Social Psychology)
Area of studies:
Psychology
Delivered by:
School of Psychology
Where:
Faculty of Social Sciences
When:
2 year, 1, 2 module
Mode of studies:
offline
Open to:
students of one campus
Instructors:
Ksenia Panidi
Master’s programme:
Applied Social Psychology
Language:
English
ECTS credits:
4
Contact hours:
48
Course Syllabus
Abstract
This course is an introduction to Behavioral and Experimental Economics. Behavioral Economics has emerged as a discipline studying situations in which the behavior of people does not correspond to the predictions of standard economic theory. Mainstream economics is based on several assumptions. First, economic agents are assumed to maximize their own utility. Second, agent’s behavior is not influenced by social or emotional factors. Third, agents have unlimited cognitive abilities allowing them to choose optimally from all available alternatives. Since 1970s researchers have accumulated a lot of evidence showing that the observed human behavior is at odds with what is predicted based on these assumptions. People often make “irrational’ choices with respect to their insurance, saving plans, health, participation in lotteries, etc. In this course we will consider the new concepts that help to explain the observed anomalies of human behavior. Since large part of these anomalies has been detected with the help of economic experiments, we will spend a lot of time discussing this methodology and its examples.
Learning Objectives
- The course aims at getting the students familiar with the main approaches and problems of contemporary behavioural economics, its combination of economic theory with experimental tests, and cross-disciplinary cooperation of social sciences.
Expected Learning Outcomes
- Getting familiar with main heuristics and biases in human decisions, be able to interpret them.
- Knowledge of applications of behavioural theory to interpretation of real decisions and public policy.
- Knowledge of approaches to human decision in time, and the problems related to inconsistency in intertemporal preferences
- Knowledge of motives and evidence for social cooperation and problems of coordination of individual decisions
- knowledge of preference orders and their connection to utilities
- Knowledge of the principles of game theory and ability to interpret incentives of people in interpersonal interactions.
- Understanding of the differences between economic and psychological approach to human decisions
- understanding of the main normative and descriptive approaches to understanding of the principles of decision making under risk.
Course Contents
- Rationality
- Economic and psychological approaches to human behaviour
- Behaviour under risk and uncertainty
- Heuristics and biases
- Models of individual decision: statics
- Models of individual decision: dynamics
- Social preferences
- Behavioural game theory
Interim Assessment
- 2021/2022 2nd module0.5 * Exam paper + 0.3 * Course project + 0.2 * домашние задания
Bibliography
Recommended Core Bibliography
- Advances in behavioral economics, , 2004
- An introduction to behavioral economics, Wilkinson, N., 2012
- Думай медленно... решай быстро, Канеман, Д., 2019
Recommended Additional Bibliography
- Behavioral game theory : experiments in strategic interaction, Camerer, C. F., 2003
- Choices, values, and frames, , 2005
- Thinking, fast and slow, 499 p., Kahneman, D., 2013
- Принятие решений в неопределенности : правила и предубеждения, Канеман, Д., 2005
- Принятие решений при многих критериях: предпочтения и замещения, Кини, Р. Л., 1981