This course introduces and discusses recent research in Behavioural Economics. We will focus in particular on the differences between “standard” economics, psychology and behavioural economics. The methods of behavioural research are discussed and several applications are covered in the lectures. The unit is designed to expose you to current theoretical and applied work in behavioural economics and how this approach can be used to improve the understanding of important aspects of economics decision making and policy analysis.

Topics (some will be covered in more than one lecture):

1. Economics, Psychology and Behavioural Economics

2. Economic Theory of Fashions and Fads: Where do we need behavioural models?

3. Decision Making under Risk and Uncertainty

4. Strategic Interaction – Game Theory and Behavioural Game Theory

5. Experimental Economic Methods –classification and discussion

6. (Behavioural) Economics of Incentives: The example of Credence Goods

7. Intertemporal Choice and “Save more tomorrow”

8. Examples of applied BehaviouralResearch:

         a. Getting Inidigenous Australians toattend school: the FOGS project.

         b. Informing Financial Regulators: TheQuBE-ASIC reports.

After completing this course students will understand the concepts and methods used in behavioural economic research. They will be able to read and critically discuss current research in this area and to start developing a research project using behavioural economic methods.