Students will be introduced to the key concepts of behavioral economics like bounded rationality, heuristics for complex choices, and framing effect. With these new concepts we will study choices under risk and the prospect theory. Then, social preferences will be investigated in a behavioral framework, as well as how culture and evolution matter for economic choices. The course will end with an introduction to the literature on happiness.
Cartwright, Edward. Behavioral Economics. Routledge, 2018: a selection of paragraphs of chapters 1,2,3,7, 8 and 10. A list of references given by the Instructor at the start of the lessons
Learning Objectives
Students should be able to put in connection the behavioral approach with the neoclassical economic theory. This connection should include both the conceptual framework and the implications for the economic analysis, as well as the consequences in terms of policy. This competence should cover the key issues of economic behavior.
Prerequisites
The exam of microeconomics at the university degree is highly advised, togheter with one or two exams focused on statistical methods. The
course will be most fruitful for those students who have already some knowledge of decision and game theory or, alternatively, for those interested on policy evalutation methods.
Teaching Methods
Mainly lectures: videos and broadcasts will be used. At the start of the course, a paper will be assigned to each student to be presented in the last month. Several lessons will be in the UNIFI economics experimental laboratory
Further information
No
Type of Assessment
The final evaluation will be with 30 points, to which it will contribute: a written exam; a presentation of a paper in class; the participation to the experimental lab activities. In detail, the written exam consists of five questions and one hour and half will be the time given. To answer the questions the graphical analysis is necessary. The content of the questions will be mainly related with the experiments presented during lessons. In each question, the student should be able to present and discuss one experiment and its main results.
Course program
Students will be introduced to the key concepts of behavioral economics like bounded rationality, heuristics for complex choices and framing effect. With these new concepts we will study choices under risk and the prospect theory. Then, social preferences will be investigated in a behavioral framework, as well as how culture and evolution matter for economic choices. The course will end with an introduction to the literature on happiness.