This intensive introductory course aims to provide a comprehensive overview of basic concepts and models in standard behavioral economics. Students will learn about methodological foundations of behavioral economics and meet the most prominent scholars of the field. They will gain an understanding of the differences between rational choice and behavioral models, both under certainty and risk. Lecture on Intertemporal choice will tap into how preferences might change over time and how to avoid procrastination or resist temptation. Students will also learn how social preferences modify the predictions of conventional game-theoretic analysis. Mental accounting deals with a question how people think about value and money, and why – for example – paying online hurts less or why we like three smaller gifts better than one big. The last topic will cover a topic of learning, which is a key element of our interaction with environment we live in.
Topics covered
- Brief History and Methodology of Behavioral Economics
- Values, Preferences and Choices
- Heuristics and Biases
- Intertemporal Choice
- Decision-making under Risk and Uncertainty
- Behavioral Game Theory
- Mental Accounting
Schedule
Each lecture lasts 60 minutes. Morning lectures start at 8:30 and finish at 12:30. Afternoon lectures start at 13:30 and finish at 17:30. If not set otherwise, the break after each lecture lasts 30 minutes. All times are in Central European Time (CET).
ECTS requirements
- attend all lectures (12 hrs. of WL / 2 pts. per hour, 24 in total)
Literature
- Wilkinson, N., & Klaes, M. (2017). An introduction to behavioral economics. Macmillan International Higher Education.
- Dhami, S. (2016). The foundations of behavioral economic analysis. Oxford University Press.