AØKK08334U Foundations of Behavioural Economics

Volume 2016/2017
Education

MSc programme in Economics – elective course

 

Content

Why do people volunteer and donate to charitable causes? Why do we often eat unhealthy food, exercise too little, and struggle with completing important tasks in a timely manner? Why do most people think that they are better-than-average car drivers, entrepreneurs, lovers, ... ?  From the perspective of conventional economic theory, these questions are difficult to answer. Behavioral Economics is an attempt to shed light on these and other puzzling phenomena. By enriching the traditional economic model with an empirically more accurate foundation of human behavior, Behavioral Economics aims at improving the predictive power of economic models and the resulting policy recommendations.

In this course, we will discuss the psychological foundations of human behavior and their economic implications. The course builds on the introductory course “Psychology of Choice” and lays the foundations for subsequent field courses in which insights from behavioral economics are applied to different areas of economic research (e.g., Behavioral Finance, Science of Behavior Change, or Behavioral Public Economics).

In the course, we will present the empirical regularities that have inspired the development of Behavioral Economics, analyze the key theoretical models that have been brought forward, and discuss a number of applications where insights from Behavioral Economics have contributed to a better understanding of individual behavior and market outcomes.

The course will focus on the following topics:

  • Fairness and Social Preferences

  • Reference-Dependent Preferences and Loss Aversion

  • Present-Biased Preferences and Limited Self Control

  • Limited Cognitive Resources and Attention

  • Behavioral Economics, Market Interactions, and Economic Policy

Learning Outcome

After having successfully completed the course, students should be able to

Knowledge:

  • understand central theoretical insights and empirical research results in behavioral economics.

  • understand how economic theory, lab and field experiments,and other complementary empirical methods can be used to address research questions in behavioral economics.

Skills:

  • interpret and critically assess theoretical and empirical studies at the intersection of economics and psychology.

  • put the results of these studies into perspective and identify limitations of the existing body of knowledge.

Competencies:

  • apply behavioral economic insights to theoretical problems and practical empirical questions.

  • The course also equips the students with the necessary tools and skills to continue working on behavioral economic topics in seminars or Master’s theses.

 

The course will be based on lecture notes and research papers, as well as selected handbook chapters and survey articles. A detailed syllabus with required readings will be provided in the beginning of the course.

The following survey articles provide an excellent introduction to the literature.

  • Rabin, M. (1999). Psychology and Economics. Journal of Economic Literature, 36: 11-46.

  • DellaVigna, S. (2009). Psychology and Economics: Evidence from the Field. Journal of Economic Literature, 47: 315-372.

A thorough knowledge of microeconomic theory (especially game theory and contract theory), microeconometrics and econometrics as in the bachelor programme of Economics are required. In particular, it is strongly recommended that Microeconomics III have been followed prior to taking this course. Ideally, students should also have attended the interdisciplinary course on “The Psychology of Choice”.
Lectures will supplemented with a number of guided practice sessions. In the practice sessions, we will discuss problem sets and homework assignments. Assignments will consist of theoretical exercises and empirical case studies through which the students can deepen and apply the knowledge acquired in the lecture.
Student participation and an active discussion will be expected and encouraged.
Schedule:
2 hours of classes 1-2 times per week for 14 weeks.

Time and venue:
To see the time and location of lectures please press the link/links under "Se skema" (See schedule) at the right side of this page (17F means Spring 2017).

You can find the similar information partly in English at
https:/​/​skema.ku.dk/​ku1617/​uk/​module.htm
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-F17; [Name of course]”
-Select Report Type: List
-Select Period: "Forår/Spring – Week 4-29”
Press: “ View Timetable”
  • Category
  • Hours
  • Exam
  • 3
  • Lectures
  • 42
  • Preparation
  • 161
  • Total
  • 206
Credit
7,5 ECTS
Type of assessment
Written examination, 3 hours under invigilation
at the computers of the University. The exam assignment is given in English and must be answered in English.
Exam registration requirements

None

Aid
Without aids
Marking scale
7-point grading scale
Censorship form
External censorship
100 % censorship
Exam period

The exam takes place:

Juni 2, 2017

at Peter Bangs Vej 36. 2000 Frederiksberg http:/​/​pc-eksamen.ku.dk/​pc_exam The exact time of the exam will be informed in the Self-Service at KUnet.

For enrolled students more information about examination, rules etc. is available at the student intranet for Examination (English) and student intranet for Examination (KA-Danish).

 

Re-exam

The written re-exam takes place:

August 22, 2017

at Peter Bangs Vej 36. 2000 Frederiksberg http:/​/​pc-eksamen.ku.dk/​pc_exam The exact time of the exam will be informed in the Self-Service at KUnet.

If only a few students have registered for the re-exam, the exam might change to an oral exam including the date, time and place for the exam, which will be informed  by the Examination Office.

Criteria for exam assesment

Students are assessed on the extent to which they master the learning outcome for the course.

To receive the top grade, the student must be able to demonstrate in an excellent manner that he or she has acquired and can make use of the knowledge, skills and competencies listed in the learning outcomes.