- The course aims at getting the students familiar with the main approaches and problems of contemporary behavioural economics, its combination of economic theory with experimental tests, and cross-disciplinary cooperation of social sciences.
- knowledge of preference orders and their connection to utilities
- Understanding of the differences between economic and psychological approach to human decisions
- Getting familiar with main heuristics and biases in human decisions, be able to interpret them.
- understanding of the main normative and descriptive approaches to understanding of the principles of decision making under risk.
- Knowledge of applications of behavioural theory to interpretation of real decisions and public policy.
- Knowledge of approaches to human decision in time, and the problems related to inconsistency in intertemporal preferences
- Knowledge of the principles of game theory and ability to interpret incentives of people in interpersonal interactions.
- Knowledge of motives and evidence for social cooperation and problems of coordination of individual decisions
- RationalityPsychology and economics of behaviour. Economic way of thinking. Rational decision making: standard vs behavioural approach. Axioms of rational preferences. Generalized binary (preference) relations. Choice functions, revealed preferences.
- Economic and psychological approaches to human behaviourDifferences between economic and psychological approaches: rationality, behaviour, observational vs. experimental studies. Examples of economic theories and economic experiments. Key contributors in the field.
- Behaviour under risk and uncertaintyDefinitions of risk and uncertainty. History of the concepts. Expected utility theory of von Neumann-Morgenstern and its axioms. Experimental evidence: the Allais paradox. Subjective expected utility. Rank-dependent utilities and Prospect Theory by Kahneman-Tversky. Examples.
- Heuristics and biasesDeviations from normative rationality. Heuristics and biases paradigm by Kahneman and Tversky. Examples of heuristics and their meaning. Classroom experiments.
- Models of individual decision: staticsCharacteristic properties of individual decisions: loss aversion, reference points, status quo, and their implications for human decisions. R.Thaler: mental accounting, nudging and applications to transportation behaviour, saving, honesty, health studies, education etc. Behavioral nudge in practical applications.
- Models of individual decision: dynamicsIntertemporal preferences and intertemporal inconsistency. Exponential and hyperbolic discounting. Multiple selves models and their applications to temptation, self-control, procrastination.
- Social preferencesSocial dilemmas and collective choice. The public goods game and cooperation across the globe. Punishment in experiments and in the field. Explanation to behavioural puzzles.
- Behavioural game theoryGame theory and behavioural games. Ultimatum, dictator, trust game – theoretical predictions and empirical evidence. Deviations from theoretical predictions and their explanations. Behavioural theories of collective decision making: inequity aversion, fairness, reciprocity, guilt aversion etc. Experimental evidence.
- Interim assessment (2 module)0.3 * Course project + 0.5 * Exam paper + 0.2 * домашние задания
- Advances in behavioral economics, Camerer C. F., 2004
- An introduction to behavioral economics, Wilkinson N., Klaes M., 2012
- Думай медленно... решай быстро, Канеман, Д., 2019
- Behavioral game theory : experiments in strategic interaction, Camerer C. F., 2003
- Choices, values, and frames, Kahneman D., 2005
- Thinking, fast and slow, 499 p., Kahneman, D., 2013
- Принятие решений в неопределенности : правила и предубеждения, Канеман Д., Словик П., 2005
- Принятие решений при многих критериях: предпочтения и замещения, Кини Р. Л., Райфа Х., 1981