Bachelor
2024/2025
Behavioral Economics
Type:
Elective course (Economics and Data Science)
Area of studies:
Applied Mathematics and Information Science
Delivered by:
Department of Theoretical Economics
Where:
Faculty of Economic Sciences
When:
3 year, 3 module
Mode of studies:
offline
Open to:
students of one campus
Instructors:
Soubhagya Sahoo
Language:
English
ECTS credits:
3
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
- Correlation vs. causation
- Introduction to Behavioral Economics
- Behavioral development 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
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