Module Handbook

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Course WIW-IOE-BEET-K-7

Behavioural Economic Theory (3K, 4.5 LP)

Course Type

SWS Type Course Form CP (Effort) Presence-Time / Self-Study
3 K 4.5 CP 45 h 90 h
(3K) 4.5 CP 45 h 90 h

Basedata

SWS 3K
CP, Effort 4.5 CP = 135 h
Position of the semester 1 Sem. in WiSe
Level [7] Master (Advanced)
Language [EN] English
Lecturers
Area of study [WIW-IOE] Microecomonics
Livecycle-State [NORM] Active

Contents

Description of (experimentally) observed behaviour and human decision making by behavioural economic concepts

Central Topics:

  • 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
  • Loewenstein–Prelec–model
  • Mental accounting
  • Reference-dependent preferences
  • Chosen preferences
  • ERC–model
  • Further theory from recent publications

Competencies / intended learning achievements

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.
  • Explain significant behavioural economic theory alternatives.
  • Embed behavioural theory alternatives in existing economic models.

Literature

  • Angner, Erik (2016): A Course in Behavioral Economics. 2. Edition London, New York, Palgrave MacMillan.
  • Beck, Hanno (2014): Behavioral Economics. Eine Einführung. 1. Edition, Wiesbaden, Springer Gabler.
  • Camerer, Colin F.; Loewenstein, George F.; Rabin, Matthew (2004): Advances in Behavioral Economics. 1. Edition, New York, Princeton, Oxford, Russell Sage Foundation, Princeton University Press.
  • Dhami, Sanjit S. (2016): The Foundations of Behavioral Economic Analysis. 1. Edition, Oxford, New York, Oxford University Press.
  • Wilkinson, Nick; Klaes, Matthias (2018): An Introduction to Behavioral Economics. 3. Edition, London, Palgrave; Macmillan

Materials

  • Lecture slides
  • Problem sets
  • Seminal papers

Requirements for attendance (informal)

A course in microeconomics and game theory, analytic thinking

Requirements for attendance (formal)

The module ‘Behavioural Economics and Applications’ has not been completed.

References to Course [WIW-IOE-BEET-K-7]

Module Name Context
[WIW-IOE-BEET-M-7] Behavioural Economic Theory P: Obligatory 3K, 4.5 LP