Behavioral economics (2016/2017)

Course code
4S02512
Name of lecturer
Luca Zarri
Coordinator
Luca Zarri
Number of ECTS credits allocated
6
Academic sector
SECS-P/01 - ECONOMICS
Language of instruction
Italian
Location
VERONA
Period
Secondo Semestre Magistrali dal Feb 27, 2017 al Jun 1, 2017.

Lesson timetable

Learning outcomes

The major goal of this course is to provide students with a better and more rigorous understanding of a number of economic and social phenomena that characterize contemporary advanced economic systems and that can be fruitfully addressed through the lens of the major theoretical constructs and empirical findings (including experimental evidence) obtained in the last years within the framework of so called 'behavioural economics'.

Syllabus

1. Introduction. What is 'behavioural economics'? The two 'souls' of behavioural economics: bounded rationality and non-selfish rationality. Behavioural economics and experimental economics
2. From full rationality to bounded rationality. Cognitive biases and economic behavior. Dual Process Theories: System 1 and System 2. Framing effects, loss aversion, endowment effect, intertemporal choices and present-biased preferences. Default effects: evidence from organ donations. The relationship between rationality and emotions in economic choices: neuroeconomic evidence. Law of small numbers, gambler's fallacy and hot hand fallacy. Anchoring effect, money illusion and the sunk cost effect. Policy implications and 'asymmetric paternalism'
3. From selfish rationality to non-selfish rationality. Experimental evidence and social preferences. Ethical consumption and Corporate Social Responsibility. Trust and social capital. Social norms and Pluralistic Ignorance
4. Ex ante utility, ex post utility and happiness paradoxes. Positional goods and relative income. Relational goods and subjective well-being

References:

- “Pensieri lenti e veloci”, D. Kahneman, Mondadori, 2012
- "Mente Mercati Decisioni", M. Motterlini and F. Guala, EGEA, 2011
- “Behavioural Economics”, S. Mullainathan and R. Thaler, entry, International Encyclopedia of the Social and Behavioral Sciences, 2001
- "The Behavioral Economics Guide 2015", edited by A. Samson, 2015
- “Regulation for Conservatives: Behavioral Economics and the Case for ‘Asymmetric Paternalism’”, C. Camerer et al., University of Pennsylvania
Law Review, 151, 3, 2003
- “La responsabilità sociale dell’impresa” and “Felicità, beni relazionali, progresso civile”, L. Becchetti, in L. Becchetti et al., Microeconomia,
il Mulino, Bologna, 2010
- “The Role of Social Capital in Financial Development”, L. Guiso et al., American Economic Review, 94, 3, 2004

Further teaching materials will be provided online, through the E-learning service, within the specific webpage prepared for this course.

Assessment methods and criteria

60-minute written exam, aimed at testing students' understanding of a number of economic and social phenomena that characterize contemporary advanced economic systems and that can be fruitfully addressed through the lens of the major theoretical constructs and empirical findings (including experimental evidence) obtained in the last years within the framework of so called behavioural economics. The exam will be based on a) multiple choice questions; b) an open question and c) an exercise based on behavioral game theory topics. It is also possible to prepare a talk on an issue related to the course outline (see on this the explanatory material provided online within the dedicated E-learning page for this course).

STUDENT MODULE EVALUATION - 2016/2017