BEHAVIORAL ECONOMICS AND CONSUMER DECISION MAKING 

This course explores topics in the field of behavioral economics, which seeks to explain how psychological factors affect human decision-making. The objective of the course is to provide students with a solid understanding of (i) why people make the choices they do and (ii) how behavioral insights can be used to inform business strategies and advance policies on health, energy, taxation, and more.

Basic microeconomics and statistics.

(1) Knowledge and understanding: The course will discuss key concepts in behavioral economics, both from a theoretical and from an experimental perspective. Students will be able to appreciate behavioral descriptive theories of choice and judgment against the backdrop of traditional normative theories of rationality. (2) Applying knowledge and understanding: Students will participate in a group project that will allow them to learn how to use insights from behavioral economics to improve economic, environmental or social outcomes. (3) Making judgements: Students will be able to understand the bounds of traditional normative models, which will improve their analytical and decision-making skills. In particular, students will appreciate the importance of taking into account data and the pitfalls of relying on partial data, as it is often intuitively done. Thus, this course not only will expand the conceptual toolbox of students, enabling them to make judgment on a wider area, but will also give students the conceptual tools to avoid common mistakes and ameliorate their judgment skills. (4) Communications Skills: Part of the lectures will be devoted to class discussion, helping students articulate their knowledge and sharpen their communication skills. Part of student assessment will revolve around presentations, discussions and providing feedback. (5) Learning skills: This course stresses the importance of autonomous learning and will empower students by offer them innovative analytical tools to reason about choices in society and in the economic models on which behavioral interventions are based.

Module 1 introduces the conceptual foundations of behavioral economics and contrasts them with traditional microeconomic theory. Topics discussed in this module include prospect theory, loss aversion, and other choice biases and heuristics. Module 2 covers topics such as people's ability to use new information, social preferences, and salience.

Edward Cartwright (2018), Behavioral Economics, 3rd edition, Routledge. Additional readings provided by the instructors.

Lectures, discussions, student presentations

The grade of students who attend classes will be determined as follows: - Six in-class tests: up to 5 points. - Group essay: up to 16 points (up to 4 points for the first submission, up to 4 points for the second submission, and up to 8 points for the third submission). - Final exam: up to 10 points. Students who do not attend classes will be assessed based on a comprehensive exam worth 100% of the course grade. For more information, see the course's Learn page.

Timely requested, agreed upon topic.

The course examines the determinants of pro-environmental behavior and cooperation for climate change mitigation.