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Regular version of the site
Bachelor 2018/2019

Behavioral and Experimental Economics and Finance

Type: Elective course (Economics)
Area of studies: Economics
When: 3 year, 2 module
Mode of studies: Full time
Language: English
ECTS credits: 3

Course Syllabus

Abstract

To do that, we will touch upon both experiments and theory. From the experimental side, we will study the most profound observations from the lab and the field, learn basic techniques how to create and evaluate your own experimental data. From the theoretical side, we will study basic theories that attempt to explain observed biases and learn how to extend the standard economic models to account for behavioral aspects. The course has three parts: – introduction to standard microeconomic theory (topics 2, 4, 6) and aspects of human cognition and behavior that limit its application (topics 3,5,7), – main behavioral theories and related experiments that tackle these limits of standard theory (topics 8-11).
Learning Objectives

Learning Objectives

  • to understand human behavior beyond microeconomic theory.
Expected Learning Outcomes

Expected Learning Outcomes

  • to distinguish the standard rational agent behavior from the observed patterns
  • to identify behavioral biases in economically relevant situations
  • to describe the observed behavior using the established academic theories
  • to propose a falsifiable hypothesis w.r.t. a certain aspect of behavior, and an experiment to test it
  • to construct a mathematical model of an observed bias and solve it
  • to design and run an experiment
Course Contents

Course Contents

  • Rational choice under certainty
  • Introduction to BEE
  • Behavioral choice under certainty
  • Probability judgment
  • Judgment under risk and uncertainty
  • Rational choice under risk
  • Behavioral choice under risk
  • Intertemporal choice
  • Behavioral game theory
  • Other-regarding preferences
  • Belief-management
Assessment Elements

Assessment Elements

  • non-blocking in-class participation
  • non-blocking test
  • non-blocking homework assignments
  • non-blocking final exam
Interim Assessment

Interim Assessment

  • Interim assessment (2 module)
    0.6 * final exam + 0.2 * homework assignments + 0.1 * in-class participation + 0.1 * test
Bibliography

Bibliography

Recommended Core Bibliography

  • Brañas-Garza, P., & Cabrales, A. (2016). Experimental Economics : Volume II: Economic Applications. Basingstoke, Hampshire [UK]: Palgrave Macmillan. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1231543

Recommended Additional Bibliography

  • Burkett, J. P. (2006). Microeconomics: Optimization, Experiments, and Behavior. Oxford University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.oxp.obooks.9780195189629