040296 UK Introduction to Behavioral Economics (BA) (2018W)
Continuous assessment of course work
Labels
Registration/Deregistration
Note: The time of your registration within the registration period has no effect on the allocation of places (no first come, first served).
- Registration is open from Mo 10.09.2018 09:00 to Th 20.09.2018 12:00
- Deregistration possible until Mo 15.10.2018 23:59
Details
max. 50 participants
Language: English
Lecturers
Classes (iCal) - next class is marked with N
Monday
01.10.
15:00 - 16:30
Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday
02.10.
16:45 - 18:15
Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Monday
08.10.
15:00 - 16:30
Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday
09.10.
16:45 - 18:15
Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Monday
15.10.
15:00 - 16:30
Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday
16.10.
16:45 - 18:15
Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Monday
22.10.
15:00 - 16:30
Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday
23.10.
16:45 - 18:15
Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Monday
29.10.
15:00 - 16:30
Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday
30.10.
16:45 - 18:15
Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Monday
05.11.
15:00 - 16:30
Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday
06.11.
16:45 - 18:15
Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Monday
12.11.
15:00 - 16:30
Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday
13.11.
16:45 - 18:15
Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Monday
19.11.
15:00 - 16:30
Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday
20.11.
16:45 - 18:15
Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Monday
26.11.
15:00 - 16:30
Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday
27.11.
16:45 - 18:15
Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Monday
03.12.
15:00 - 16:30
Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday
04.12.
16:45 - 18:15
Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Monday
10.12.
15:00 - 16:30
Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday
11.12.
16:45 - 18:15
Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Monday
07.01.
15:00 - 16:30
Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday
08.01.
16:45 - 18:15
Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Monday
14.01.
15:00 - 16:30
Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday
15.01.
16:45 - 18:15
Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Monday
21.01.
15:00 - 16:30
Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday
22.01.
16:45 - 18:15
Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Monday
28.01.
15:00 - 16:30
Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday
29.01.
16:45 - 18:15
Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Information
Aims, contents and method of the course
The course aims to make students familiar with the most relevant theories of psychology and economics (behavioral economics). We start reviewing standard economic theories and solution concepts such as Expected Utility Theory for decision making under risk, Samuelson's discounted utility model, and Nash equilibrium for non-cooperative game theory. We then proceed to discuss the weaknesses of these theories in light of empirical evidence from the laboratory, from field data, and even from the student's choices. We proceed to study and discuss alternative models that better fit the regularities described by human choice data and that are well-known in the literature such as Nobel-prize-winning prospect theory, quasi-hyperbolic discounting, quantal response equilibrium, and inequality aversion.Method:The course is divided in four modules. In each of the modules a theory of behavioral economics is presented by the lecturer along with its respective empirical regularities. The applications of each of these theories are discussed and presented by the students.DISCLAIMER: This course is designed for intermediate to advanced bachelor students. Intermediate knowledge of Microeconomics and basic knowledge of Econometrics is recommended.
Assessment and permitted materials
The grade of the course will be assessed using these criteria:-Midterm (30%)-Presentation (30%)-Research Proposal (40%)
Minimum requirements and assessment criteria
The sum of the score of midterm, presentation, and final exam needs to be higher than 50%.
Examination topics
Module 0: IntroductionModule 1: Decision making under risk
-Expected Value.
-Expected Utility Theory
-The Allais paradox and other anomalities.
-Original Prospect Theory.
-Rank Dependent Utility Theory.
-Cumulative Prospect Theory.Module 2: Intertemporal Decision-Making.-Samuelson's discounted utility model.
-Hyperbolic discounting
-Quasi-hyperbolic preferences.
-Alternative models of intertemporal decision-makingModule 3: Behavioral Game Theory-Non-cooperative game theory and Nash Equilibrium.
-Cognitive Hierarchy Theory
-Quantal response equilibrium.Module 4: Social Preferences- Inequity aversion.
- Fairness.
-Other models of social preference
-Expected Value.
-Expected Utility Theory
-The Allais paradox and other anomalities.
-Original Prospect Theory.
-Rank Dependent Utility Theory.
-Cumulative Prospect Theory.Module 2: Intertemporal Decision-Making.-Samuelson's discounted utility model.
-Hyperbolic discounting
-Quasi-hyperbolic preferences.
-Alternative models of intertemporal decision-makingModule 3: Behavioral Game Theory-Non-cooperative game theory and Nash Equilibrium.
-Cognitive Hierarchy Theory
-Quantal response equilibrium.Module 4: Social Preferences- Inequity aversion.
- Fairness.
-Other models of social preference
Reading list
-Tversky, A., & Kahneman, D. (1992). Advances in prospect theory: Cumulative representation of uncertainty. Journal of Risk and uncertainty, 5(4), 297-323.-Kahneman, D., & Tversky, A. (2013). Prospect theory: An analysis of decision under risk. In Handbook of the fundamentals of financial decision making: Part I (pp. 99-127).-Wakker, P. P. (2010). Prospect theory: For risk and ambiguity. Cambridge university press.-Gonzalez, R., & Wu, G. (1999). On the shape of the probability weighting function. Cognitive psychology, 38(1), 129-166.Laibson, D. (1997). Golden eggs and hyperbolic discounting. The Quarterly Journal of Economics, 112(2), 443-478.Thaler, R. (1981). Some empirical evidence on dynamic inconsistency. Economics letters, 8(3), 201-207.Frederick, S., Loewenstein, G., & O'donoghue, T. (2002). Time discounting and time preference: A critical review. Journal of economic literature, 40(2), 351-401.Goeree, J. K., Holt, C. A., & Palfrey, T. R. (2010). Quantal response equilibria. In Behavioural and Experimental Economics (pp. 234-242). Palgrave Macmillan, London.McKelvey, R. D., & Palfrey, T. R. (1995). Quantal response equilibria for normal form games. Games and economic behavior, 10(1), 6-38.Bolton, G. E., & Ockenfels, A. (2006). Inequality aversion, efficiency, and maximin preferences in simple distribution experiments: comment. American Economic Review, 96(5), 1906-1911.Fehr, E., & Schmidt, K. M. (1999). A theory of fairness, competition, and cooperation. The quarterly journal of economics, 114(3), 817-868.
Association in the course directory
Last modified: Mo 07.09.2020 15:29