Behavioural and Experimental Economics

Faculteit Economie en Bedrijfskunde
Jaar 2017/18
Vakcode EBB086A05
Vaknaam Behavioural and Experimental Economics
Niveau(s) bachelor, uitwisseling
Voertaal Engels
Periode semester I b
ECTS 5

Uitgebreide vaknaam Behavioural and Experimental Economics
Leerdoelen Upon completion of the course the student is able to:
1. Explain the differences between rational-choice theory and behavioral economics.
2. Describe the main experimental results related to the behavioral view of human decision-making.
3. Recognize situations where the studied concepts (e.g. framing, loss aversion, time inconsistency or social preferences) may guide human decision-making.
4. Qualitatively and quantitatively apply the studied concepts and models, such as the basic models of prospect theory, hyperbolic discounting, fairness and reciprocity.
5. Describe the different features of an experimental design and to provide a well-founded judgement on how appropriate they are to examine the given research question.
6. Describe and critically evaluate the research (e.g. various experimental papers) covered in class.
7. Discuss key methodological issues in experimental economics and the strengths and weaknesses of experiments.
8. Formulate research questions that can be examined with an experimental design.
9. Design an economic experiment, present it and write it up as a research proposal.
Omschrijving As the name suggests, this course has two main themes: behavioural economics and experimental economics. They are interconnected, as behavioral economics (BE) is typically informed by insights from experimental research.
Introduction to behavioral economics:
Oftentimes, we are not the flawless, time-consistent maximizers of our own expected utility that neoclassical rational choice theory assumes us to be. Instead, we tend to make choices that are not in our long-run self-interest. For example, we delay unpleasant tasks and are tempted by short-term pleasures. Our choices are susceptible to the framing of decision-making problems because our cognitive abilities to solve them are limited. Also, we are willing to sacrifice our own interests to help others. The behavioral economics part of the course will teach you the basic theories that describe the above behaviors, including basic prospect theory, hyperbolic discounting and theories of fairness and altruism.
Introduction to experimental economics:
Experimental economics (EE) can be viewed both as a research methodology and as a research field – we will discuss both of these in the course. You will get acquainted with the terminology and standards of experimental economics and the main types of experiments. We will discuss experimental research on various topics (e.g. market experiments, game theory experiments, labor market experiments). We will make a direct connection to behavioral economics by discussing experimental evidence on the behavioral view of human decision-making. We will not only talk about experiments but also do some classroom experiments ourselves during classes. There will also be a group assignment, where the task is to work out a proposal for an economic experiment. You will present this proposal in class, incorporate the feedback that you get, and write up the research proposal as a paper.
Uren per week 4
Onderwijsvorm gecombineerde hoor-/werkcolleges
Toetsvorm opdracht(en), schriftelijk tentamen met open vragen
(and multiple choice questions)
Vaksoort bachelor
Coördinator dr. A.N. Péter
Docent(en) dr. A.N. Péter ,prof. dr. A.R. Soetevent
Verplichte literatuur
Titel Auteur ISBN Prijs
Articles t.b.a.
A course in behaviorial economics, 2nd edition Angner, Erik 9781137512925 ca. €  45,00
Lecture notes Péter, A.N., and A.R. Soetevent
Entreevoorwaarden Students should be familiar with the contents of the Microeconomics courses (EBP841B05 and EBB067A05), as well as the Mathematics and Statistics courses (EBP817B05, EBP034A05, EBP822B05) of year 1 and year 2 of the BSc E&BE (or equivalent courses for students from other programmes).
Opmerkingen Coördinator: Dr. Noémi Péter, a.n.peter@rug.nl, kamer 5411.0749
Secretariaat: Kimberley Vudinh, k.m.vudinh@rug.nl, kamer 5411.0734
Opgenomen in
Opleiding Jaar Periode Type
BSc Bedrijfskunde/Bdk  (minor Algemene Economie voor de Lerarenopleiding) 3 semester I b verplicht
BSc Economics and Business Economics/E&BE  (minor E&BE) 3 semester I b keuze
Courses open to Exchange Students (BSc)  ( Courses open to Exchange Students (BSc) without limited access) 3 semester I b keuze
Pre-MSc-programma’s FEB  (Pre-MSc Algemene Economie voor de Lerarenopleiding) 1 semester I b verplicht