Course 2012-2013 a.y.

Go to class group/s: 31

CLMG (6 credits - I sem. - OP  |  SECS-S/06) - M (6 credits - I sem. - OP  |  SECS-S/06) - IM (6 credits - I sem. - OP  |  SECS-S/06) - MM (6 credits - I sem. - OP  |  SECS-S/06) - AFC (6 credits - I sem. - OP  |  SECS-S/06) - CLAPI (6 credits - I sem. - OP  |  SECS-S/06) - CLEFIN-FINANCE (6 credits - I sem. - OP  |  SECS-S/06) - CLELI (6 credits - I sem. - OP  |  SECS-S/06) - ACME (6 credits - I sem. - OP  |  SECS-S/06) - DES-ESS (6 credits - I sem. - OP  |  SECS-S/06) - EMIT (6 credits - I sem. - OP  |  SECS-S/06)

Course Director:
JOSHUA BENJAMIN MILLER

Course Objectives

This is an advanced elective course which covers alternative approaches to understanding and predicting individual behavior in economic environments. The course illustrate hows careful experimentation can illuminate behavioral patterns which can inform economic theory and practical applications. The course provides the student with an understanding of the behavioral implications of theoretical models and experimental evidence. The student acquires the skills to design experiments and interpret & analyze experimental data. Individual behavior is the basis of all economic models and therefore the importance of different individual characteristics for incentive systems, investments and market institutions are stressed. This course is addressed to students from many degree programs; we don't prove theorems, but the ability to understand and apply formal mathematical definitions and results is expected.

Course Content Summary

Theory, experiments and neurological experiments on the following topics:

• Individual behavior in certain environments: basic choice theory, revealed preference, binary choice. Experimental and neuro-experimental evidence, value elicitation. Context dependence, anchors, endowment effect, default bias. Applications: choice architecture.
• Individual behavior in uncertain environments: risk aversion, expected utility, prospect theory, ambiguity aversion. Experimental and neuro-experimental evidence, estimation, and preference elicitation. Applications to financial decision making.
• Testing Game Theory. Economic games as a device for investigating social phenomena.
• Design and Analysis Experiments: causality and comparison with other empirical methods, treatment design and elimination of confounds, experimental implementation, basic statistical tests.
• Market Experiments, Field Experiments.

 

Advances: Economic decision models based on models of the brain and mind.

Detailed Description of Assessment Methods

All exams for this course are written.

For attending students:

There is a final exam: 50%. Homeworks: 25%. Experimental Project: 10%. Papers to be read and presented in class: 10%. Experiment participation: 5%.

For non attending students:

Attendance is strongly encouraged. Not-attending students must be complete all the above assignments and exams. 

Textbooks

Folder of class materials including notes, papers, excerpts from books.

Exam textbooks & Online Articles (check availability at the Library)

Prerequisites

Microeconomics.

Last change 29/03/2012 16:29