Behavioral and Experimental Economics

2022/2023

Academic Year

ENG

Instruction in English

3

ECTS credits

Delivered at:

Department of Economics

Course type:

Compulsory course

When:

3 year, 1 module

Instructor

Mitrankova, Maria

Course Syllabus

Abstract

Recently, it has been noted by economists that in many areas of decision making, individuals (and groups of individuals) often deviate from rational behavior in identifiable and predictable ways. The main goal of behavioral economics is to incorporate these biases into more accurate economic decision making models. In particular, economic theory is constantly being tested (and improved) using the methods of experimental economics. Practice areas such as marketing are also influenced by experimental methods and the results they generate. This course will expand students' understanding of decision-making processes, as well as introduce them to both formal models and economic experiments.

Learning Objectives

• Expand knowledge in the field of behavioral economics.
• Familiarize yourself with economic experiments and their results.
• Improve own decision-making process.

Expected Learning Outcomes

• After completion of the course, students will be able to look at the world around them through the prism of their knowledge about the real behavior of people and possible deviations of behavior from classical economic theory.

Course Contents

• Rationality
• Heuristics
• Decision-making under conditions of uncertainty and risk
• Fundamentals of Experimental Economics
• Strategic interactions and auctions
• Multiple balances and coordination
• Intertemporal Choice

Assessment Elements

• Test 1
  "Homework" / "Test" includes several separate tasks, each of which has its own maximum score (listed next to the task itself). Solutions to problems must be submitted in writing - handwritten or formatted in the form of neatly typed text in Word or LaTeX with compilation in PDF format, with detailed explanations, graphs (if necessary), formulas, references to theoretical provisions (definitions, theorems). In extreme cases, homework can be submitted by email (scan), but as one file.
• Test 2
  "Homework" / "Test" includes several separate tasks, each of which has its own maximum score (listed next to the task itself). Solutions to problems must be submitted in writing - handwritten or formatted in the form of neatly typed text in Word or LaTeX with compilation in PDF format, with detailed explanations, graphs (if necessary), formulas, references to theoretical provisions (definitions, theorems). In extreme cases, homework can be submitted by email (scan), but as one file.
• Homework 1
  "Homework" / "Test" includes several separate tasks, each of which has its own maximum score (listed next to the task itself). Solutions to problems must be submitted in writing - handwritten or formatted in the form of neatly typed text in Word or LaTeX with compilation in PDF format, with detailed explanations, graphs (if necessary), formulas, references to theoretical provisions (definitions, theorems). In extreme cases, homework can be submitted by email (scan), but as one file.
• Homework 2
  "Homework" / "Test" includes several separate tasks, each of which has its own maximum score (listed next to the task itself). Solutions to problems must be submitted in writing - handwritten or formatted in the form of neatly typed text in Word or LaTeX with compilation in PDF format, with detailed explanations, graphs (if necessary), formulas, references to theoretical provisions (definitions, theorems). In extreme cases, homework can be submitted by email (scan), but as one file.
• Homework 3
  "Homework" / "Test" includes several separate tasks, each of which has its own maximum score (listed next to the task itself). Solutions to problems must be submitted in writing - handwritten or formatted in the form of neatly typed text in Word or LaTeX with compilation in PDF format, with detailed explanations, graphs (if necessary), formulas, references to theoretical provisions (definitions, theorems). In extreme cases, homework can be submitted by email (scan), but as one file.

Interim Assessment

• 2022/2023 1st module
  0.26 * Homework 1 + 0.26 * Homework 3 + 0.26 * Homework 2 + 0.11 * Test 2 + 0.11 * Test 1

Bibliography

Recommended Core Bibliography

• Angner, E. (2016). A Course in Behavioral Economics 2e (Vol. 2nd ed). Basingstoke: Palgrave Macmillan. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1524094

Recommended Additional Bibliography

• Methods in experimental economics : an introduction, Weimann, J., 2019