Overview

Behavioural economics uses concepts from both economics and psychology in order to understand why and how people make the decisions that they do. It differs from standard economics which assumes that individuals have well-defined preferences and make well-informed self interested decisions. There is a lively academic debate around the contributions of behavioural economics.

Experimental economics is a branch of economics that studies human behaviour in controlled laboratory or field settings in order to identify causal effects. They are widely used by classical and behavioural economists, as well as policy makers alike in order to answer interesting and relevant questions.

This course will introduce students to a number of behavioural economic theories of decision making, and provide them with the skills to analyse and evaluate them. It will also provide students with an introduction to the experimental methodologies used in economics.

The course will cover the following topics (but is not limited to): o Models of reference dependent preferences. o Models of social preferences. o Libertarian paternalism. o Laboratory and field experiments in economics. o Designing and conducting experiments.

Assessment Strategy

-threshold -D- to D+ (40-49%): No major omissions or inaccuracies in the deployment of information/skills. Some grasp of theoretical/conceptual/practical elements. Integration of theory/practice/information present intermittently in pursuit of the assessed work's objectives. -satisfactory-C- to C+ (50-59%): Much of the relevant information and skills mostly accurately deployed. Adequate grasp of theoretical/conceptual/practical elements. Fair integration of theory/practice/information in the pursuit of the assessed work's objectives. Some evidence of the use of creative and reflective skills. -good -B- to B+ (60-69%): Very good performance Most of the relevant information accurately deployed. Good grasp of theoretical/conceptual/practical elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Evidence of the use of creative and reflective skills. -excellent -A- to A+ (70%+): Outstanding performance. The relevant information accurately deployed. Excellent grasp of theoretical/conceptual/practice elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Strong evidence of the use of creative and reflective skills.

Learning Outcomes

• Analyse the suitability of experiments to answer economic questions.

• Apply behavioural economic theories in order to explain real world economic behaviour.

• Compare different theories of economic decision making, and distinguish between standard and behavioural theories.

• Explain and compare the different opinions and viewpoints regarding the use of experiments in economics.