Delivered at:: Department of Economics

Course type:: Elective course

When:: 3 year, 2 module

Instructors

Adaeva, Xenia

Nesterov, Alexander S.

Full 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

to understand human behavior beyond microeconomic theory.

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

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

in-class participation
test
homework assignments
final exam

Interim Assessment

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

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

Bachelor’s Programme 'Economics'

Study Office

Behavioral and Experimental Economics and Finance