GRA 6667 Behavioral Economics
GRA 6667 Behavioral Economics
This course explores how formal models of behavioral economics can help us understand experimental data. The weight is on building intuitions rather than on developing technical skills. Students should be aware that this is a highly quantitative course.
Behavioral economics uses controlled experiments to document systematic deviations from the neo-classical theory built on pure self-regard and full rationality. Also, replicable deviations are used as input for new models capable of explaining observations better. The field covers a huge variety of substantial questions, pertaining to e.g. individual decision making, market interaction, social dilemmas, bargaining, auctions and voting.
The aim of this course is to provide an understanding of three broad questions:
I. What is behavioral economics?
- Which assumptions make economics behavioral?
- What is the methodological approach that makes economics behavioral?
II. What are the core insights of behavioral economics?
- With respect to individual choices?
- With respect to strategic interaction in market situations as well as in non-market situations?
III. How can insights from behavioral economics facilitate private and public decision-making?
- By making individuals aware of cognitive and emotional constraints on purposeful behavior?
- By providing advice on how to structure decision-making processes in order to increase welfare?
The course provide students with tools that can be used to operate profitably in different strategic environments as:
- consumers / voters
- firms
- bargainers
Being able to critically assess weaknesses and strengths of the standard model as well as common non-standard alternatives based on available evidence.
- What is behavioral economics?
- The standard model in economics
- Alternative assumptions
- Lab -and field experiments as tools
- Individual decision making
- Values, attitudes, preferences
- Risk and uncertainty
- Inter-temporal choices
- Strategic interaction
- Bargaining
- Public goods provision
- Markets
- Fairness and social preferences
- Trust and emotions
- Non-rational learning
Please note that while attendance is not compulsory in all courses, it is the student’s own responsibility to obtain any information provided in class that is not included on the course homepage/It's learning or text book.
The students are expected to participate in two laboratoy experiments (data from these experiments will not be used for research purposes).
All courses in the Masters programme will assume that students have fulfilled the admission requirements for the programme. In addition, courses in second, third and/or fourth semester can have specific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.
| Assessments |
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Exam category: Submission Form of assessment: Written submission Invigilation Weight: 100 Grouping: Individual Support materials:
Duration: 3 Hour(s) Comment: Final written examination with supervision Exam code: GRA66671 Grading scale: ECTS Resit: Examination when next scheduled course |
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 6 ECTS credits corresponds to a workload of at least 160 hours.