Experimental Methods and Behavioural Economics**

A.Y. 2024/2025
6
Max ECTS
40
Overall hours
SSD
SECS-P/01
Language
English
Learning objectives
The aim of this course is first to provide a grounding knowldege in the area of decision under risk adopting the classic Expected Utility model. Using experimental evidence showing how this model may miss important features of observed choices, the course will then present alternative models that have been developed to reconcile the theory with the empirical evidence. The course will then cover intertemporal decisions using a similar approach. Finally, the course will describe some well-known biases in decision making that can have significant effects in shaping economic decisions.
Expected learning outcomes
At the end of the course the students are expected to have acquired the tools necessary to:
· understand the existing literature on decision under risk and on the most relevant topics in behavioral economics;
· think and formalize decisions under risk using Expected Utility, Rank Dependent Utility and Prospect Theory, knowing the relative strengths and weaknesses of the different models;
· think and formalize intertemporal decisions using Discounted Utility and (Quasi) Hyperbolic Discounting knowing the relative strength and weaknesses of the different models;
· know how economic decisions are affected by biases known in the Behavioral Economics literature.
Single course

This course can be attended as a single course.

Course syllabus and organization

Single session

Responsible
Lesson period
Second trimester
SECS-P/01 - ECONOMICS - University credits: 6
Lessons: 40 hours
Professor: Kajackaite Agne
Professor(s)