Standard (neoclassical) economic theory makes many assumptions about human decision-makers to predict their individual behaviour. This course introduces new theories from behavioural economics, a relatively young field of economics which incorporates psychological insights in the economic theory.
In the light of experimental evidence, standard theories are revisited and more appropriate behavioural models introduced. Various forms of cognitive limitations in information processing are presented and consequences for the economic behaviour are highlighted. The course in behavioural economics aims to provide an overview of the basic theoretical concepts in this interesting subdiscipline of economics as well as access to recent research.
The course in behavioural economics held in the winter term yields 4.5 ECTS and it is conducted in English. After the lecture period, which takes place in the first six weeks of the term, students are required to present a seminal paper in the field of behavioural economics. This presentation is mandatory to sit the oral exam and can only be done in the winter term as part of the course.
As a part of the master's programme the course belongs to the following fields of specialization:
Further information where and when the lecture takes place is provided here: KIS (Search for the German title 'Verhaltensökonomik' if you try to find it in 'KIS office').
The course can be found in the module handbook using its module number WIW-IOE-BE-M-7. Further details about the examination are also mentioned in the module handbook.
- Need for behavioural economics, its development over the last decades and its relevance for modern economics
- Choice under certainty
- Judgment under risk and uncertainty
- Choice under risk and uncertainty
- Intertemporal choices
- Strategic interaction
- Applications to the finance industry, to the insurance industry and to the labour market
Competencies / Learning results
On successful completion of the module, students are able to:
- Describe deviations of human behaviour from the model of homo economicus.
- Explain crucial experiments in behavioural economics and their results which are used to characterise human behaviour and decision making.
- Formulate behavioural models as more adequate alternative to the corresponding concepts of the neoclassical theory.
- Analyse a wide variety of economic phenomena applying behavioural concepts.
- Develop policy implications based on the behavioural economic analysis.
For further questions and details contact Tom Rauber.