In this course, we survey research that incorporates behavioral and psychological evidence into economics. In particular, we consider how predictions of economic behavior differ when standard homo-economicus assumptions are replaced with psychologically realistic assumptions based on empirical observations from the lab and from the world. We also consider the implications of the modified models for market outcomes and public policy. Topics include (but are not limited to) fairness, altruism, and reciprocity; preferences for redistribution; heuristics and cognitive biases; time preferences and dynamic inconsistency.

Participants will learn how psychological, cognitive, and social factors affect the economic decisions of individuals and institutions, the consequences of such factors for market outcomes, efficiency and allocations, and their policy relevance. This course is highly recommended for Ph.D. students who would like to write a thesis on behavioral and/or experimental economics.

Attendance required, max. 2 absences

Teaching/learning methods of this course consist of lectures, reading materials, exercises, and student presentations.

Assessment depends on student discussions, assignments and final exam.

We would like to point out that the attendance in the first unit of this course is necessary.

In case you cannot attend it, please contact the course instructors in advance.