Behavioral Economics

Time I: 
Wednesday, 09:00am to 01:00pm
Time II: 
Friday, 09:00am to 01:00pm
Venue I: 
ESMT, Schlossplatz 1
Venue II: 
ESMT, Schlossplatz 1


To attend this class students must have completed the core micro courses (Microeconomics 1 and 2).

This course presents psychological and experimental research in economics indicating departures from perfect rationality, self interest, and other classical assumptions of economics. To do so, a variety of empirical results are discussed. The course, however, focuses on different ways of how these departures from the standard assumptions can be formally modeled. It also discusses the implications of these formal behavioral models for positive and normative predictions in different institutional settings. The course has three aims: (i) familiarizing students with the lively debate in experimental and behavioral economics; (ii) providing them with the methodological competence necessary to understand and judge original empirical research; (iii) provide formal tools for using so-called behavioral approaches in other areas of economics.


There is no standard textbook in behavioral economics and the course is not based on a given textbook. Instead, students are expected to read original papers. Nevertheless, a good starting point is: Kahneman, Daniel and Amos Tversky. Choices, Values and Frames, New York: Russell Sage Foundation; Cambridge, U.K.; New York: Cambridge University Press, 2000.

Details of grading / exams depend on the number of participants and will be discussed in the first session.

The course will take place on the following dates: 16.10., 18.10., 06.11., 08.11., 20.11., 22.11., 27.11., 29.11., 04.12., 06.12., 11.12., 13.12., 18.12., 20.12.
Room number 00.21, ESMT Learning Center (room numbers for sessions on 20.11. and 22.11. to be confirmed)

Fall 2013
End date of the whole course: 
Friday, December 20, 2013 - 1:00pm