Objectives

The course offers an overview of the theories and the empirical results in the Behavioral Economic field allowing the students to orientate themselves towards future deeper elaborations into this field of research.

Module 1 Behavioral economics

• 1.1 Topics and Methodology

Module 2 Bounded Rationality 

• 2.1 The Rationality Issue 
• 2.2 Search, Knowledge and Satisfaction 
• 2.3 Decision Making

Module 3 Decision Making Under Uncertainty 

• 3.1 Anomalies

Module 4 Alternatives to the EUT 

• 4.1 Prospect Theory 

Module 5 Socially Oriented Behavior 

• 5.1 Social Interactions 
• 5.2 Anomalies in Experimental Games 
• 5.3 Models of Social Preferences 

Module 6 Intertemporal Choice 

• 6.1 Anomalies 
• 6.2 Present-Biased Preferences 
• 6.3 Self Control Problems 
• 6.4 Future Utility 

Module 7 Financial Markets 

• 7.1 Behavioral Finance 
• 7.2 Price Movements 
• 7.3 Investor Sentiment 

Module 8 Beliefs 

• 8.1 Reciprocity 
• 8.2 Guilt Aversion 

Module 9 Emotions and Decision Making 

• 9.1 The Nature and Role of Emotions 
• 9.2 Emotions and Risk 

Module 10 Neurophysiological Aspects of Decision Making 

• 10.1 Neuroeconomics 
• 10.2 Endocrinological Economics 

Module 11 Motivation Crowding Out Effects 

• 11.1 Monetary Incentives 
• 11.2 Control 

Module 12 Peer Effects 

• 12.1 Conformity 

Module 13 Libertarian Paternalism 

• 13.1 Consumption Decisions 
• 13.2 Charity 
• 13.3 Health 
• 13.4 Retirement Saving 
• 13.5 Labor 

Teching methods

Lessons and individual or group assignements

Assessment

Individual essay and multiple choices written exam

References

• Camerer, C. F. and Loewenstein, G. (2004). Behavioral economics: Past, present, future.
  In C. F. Camerer, G. Loewenstein, and M. Rabin, editors, Advances in Behavioral Economics. Princeton University Press.
• Rabin, M. (1998). Psychology and economics. Journal of Economic Literature, XXXVI, 11{46.
• Guala, F. and Mittone, L. (2005). Experiments in economics: External validity and the robustness of phenomena. Journal of Economic Methodology, 12(4), 495{515.
• Camerer, C. (2003). Behavioral Game Theory: experiments in strategic interaction -
  Introduction. Princeton University Press.
• Camerer, C. F., Loewenstein, G., and Rabin, M., editors (2004). Advances in Behavioral Economics. Princeton University Press.
• Sen, A. K. (1977). Rational fools: A critique of the behavioral foundations of economic theory. Philosophy and Public A_airs, pages 317{44.
• Rubinstein, A. (2005). Discussion of \behavioral economics". In Advances in Economics and Econometrics. Theory and Applications, Ninth World Congress.
• Loewenstein, G. (1999). Experimental economics from the vantage point of behavioural economics. The Economic Journal, 109, F25{F34.
• Egidi, M. (2005). From bounded rationality to behavioral economics. Social Science Research Network,El. Paper Collection,

Further readings will be given to the students at the beginning of the course