Behavioral Economics

Instructor: 
Description: 

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 modelled. It also discusses the implications of these formal behavioral model for positive and normative predictions in different institutional settings. The course has three aims: (i) familarizing students with the lively debate in experimental and behavioral economics; (ii) providing them with the methodological competence necessary to understand and judge original emprical research; (iii) provide formal tools for using so-called behavioral approaches in other areas of economics.

Literature:

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.

Credits: 
6.00
Affiliation: 
European School of Management and Technology