Behavioral Economics

It is recommended to inquire about the planned semester study schedule before purchasing and make sure that it is suitable for him. Tel. (0 5) 274 4888.

Course Behavioral Economics (VVEIM18404) annotation

During the economic behavior course, by studying the main theories of economic behavior, the features of rational and irrational decision-making, behavioral effects and biases, the abilities to analyze and evaluate behavior, to explain and model the decisions of business entities and individuals are formed. 

Aim of course

To provide knowledge of alternative approach (to mainstream economics) of understanding decision-making by economic agents. To promote critical thinking and application of behavioral insights into student's own work: academic research, implementing a policy, running a company, or developing a product.  

Learning outcomes: Student will be able to analyze and evaluate behavioral factors and problems of market subjects, interpret and apply research results, model cost-effective behavioral solutions. Student will be able to solve tasks of modeling of cost-effective behavior implementing novelties, planning economical actions in the functional fields of business management. Student will be able to think critically, systematically and strategically in innovative behavior decision making for comprehending moral and social responsibility for personal activities. Student will be able to independently develop competence, use the knowledge of behavioral economics, form their own and collective behavior that meets the goals of economic efficiency and sustainable development. 

Basic knowledge and skills required to study this course (if applicable): Mathematics. 

Faculty and course volume in credits: A 6-credit course of study for the Master's degree in the Faculty of Business Management.

Course content

List of the Course lecture topics:

Concept of Behavioral Economics 

Behavioural biases and heuristics 

Individual behavior in the case of the traditional economic model 

Choice with risk: prospect theory

Choosing when to act: hyperbolic discounting 

Interacting with others: strategies and behavioral equilibrium

Social preferences 

Behavior in financial markets 

Neuroeconomics 

Policy and behavior (libertarian paternalism)

List of the Course exercise topics:

Discussion "What does behavioral economics add to economic science"

Prospect theory applications: literature review 

Analysis of psychological factors of economic decisions. Practical application of Khaneman fast and slow thinking theory 

Assessment of socioeconomic decision factors 

Behavioral analysis of individual decisions through time 

Discussion and literature overview: how we measure utility

Discussion and overview of research results in neuroeconomics 

Behavioral economics implications for economic policy: nudge application (e.g., saving for retirement) 

Upon completion of the course with a positive assessment, a Certificate of Completion will be issued, which is transferable to any higher education institution. Upon completion of the course module without a final assessment, a certificate of completion of the course is issued.

The cost of the course is 469,00 Eur.