Learning objectives
One of the main goals of the course is to provide students with wide knowledge of theories to explain individual behaviour, as well as hands-on experience on how to design and carry out their own experiments and analyze experimental data to test hypotheses. The tools provided in this course are transferable outside the standard research practice.
Prerequisites
Basic knowledge of microeconomic theory.
Course unit content
The aim of this course is to introduce students to the recent literature in behavioural economics, with a specific attention on how social preferences, norms and individual biases influence choices both at consumer and firm level. The lectures will explore how psychology and economics have been integrated to better understand how people respond to risk, make choices, and interact with others. The second part of the module will focus on strategic interactions and how people learn about their environment and the actions of others.
Full programme
1. Introduction;
2. Experiments in behavioural economics;
3. Gut feelings and effortful thinking
4. Expected utility theory and prospect theory
5. Thinking strategically (part I)
6. Thinking strategically (part II)
7. Social preferences: The Ultimatum game
8. Markets implications of Ultimatum game
9. Trust and Trustworthiness in real life
10. Trust and Trustworthiness in markets and organizations
11. Cooperation in social dilemmas
12 Sustaining cooperation in social dilemma
13. Resolving coordination failures in organizations
Bibliography
Chaudhuri, A. (2021). Behavioural Economics and Experiments. Taylor & Francis. (AC)
Additional readings, mandatory and optional, will be made available at the beginning of the course.
Teaching methods
Lectures will take the form of frontal lectures in which students will be exposed to theories, experimental evidence and managerial applications. Students will be often involved in classroom experiments.
Assessment methods and criteria
1) Innovative pattern. During the course the students will present the project of an experiment (idea brief) that is worth 1/3 of the final score (10 points). The remaining 2/3 (20 point plus laude) will be allocated on the basis of a written exam with multiple-choice questions and one open-text question. The exam will last 60 minutes. It will be held during a specific exam day right at the end of the classes (i.e. “preappello”) and it will be based only on the chapters of the book covered during the course. Only the students who hand in the idea brief by the date of the “preappello” will be allowed to take the exam through the innovative pattern.
Idea Briefs: students will write a short project (two pages) aimed at presenting a research questions, focusing on its motivation, and an experimental design used to explore it. The Idea brief must be developed in groups of two/three students.
2) Traditional pattern. The final exam consists of a written exam with multiple-choice questions and two open-text questions. The exam will be based on the entire book and it will last 90 minutes. Students will be able to take this exam only during the official exam sessions (i.e. there is no “preappello”).
Other information
