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Course 2011-2012 a.y.

20232 - BEHAVIOURAL MODELS AND NEUROEXPERIMENTAL EVIDENCE: APPLICATIONS IN ECONOMICS AND FINANCE


CLMG - M - IM - MM - AFC - CLAPI - CLEFIN-FINANCE - CLELI - ACME - DES-ESS - EMIT
Department of Decision Sciences

Course taught in English


Go to class group/s: 31

CLMG (6 credits - I sem. - OP  |  SECS-S/06) - M (6 credits - I sem. - OP  |  SECS-S/06) - IM (6 credits - I sem. - OP  |  SECS-S/06) - MM (6 credits - I sem. - OP  |  SECS-S/06) - AFC (6 credits - I sem. - OP  |  SECS-S/06) - CLAPI (6 credits - I sem. - OP  |  SECS-S/06) - CLEFIN-FINANCE (6 credits - I sem. - OP  |  SECS-S/06) - CLELI (6 credits - I sem. - OP  |  SECS-S/06) - ACME (6 credits - I sem. - OP  |  SECS-S/06) - DES-ESS (6 credits - I sem. - OP  |  SECS-S/06) - EMIT (6 credits - I sem. - OP  |  SECS-S/06)
Course Director:
JOSHUA BENJAMIN MILLER

Classes: 31 (I sem.)
Instructors:
Class 31: JOSHUA BENJAMIN MILLER


Course Objectives

This is an advanced elective course which covers alternative approaches to understand and predict individual behavior in economic environments. The course illustrates how careful experimentation can illuminate behavioral patterns which can inform economic theory and practical applications.The course provides the student with an understanding of the behavioral implications of theoretical models and experimental evidence. The student acquires the skills to design experiments and interpret experimental data. Individual behavior is the basis of all economic models and therefore the importance of different individual characteristics for incentive systems, investments and market institutions is stressed. This course attracts students from many degree programs and therefore we won’t be proving theorems; however, the ability to understand and apply formal mathematical definitions and results is expected.


Course Content Summary

Theory, experiments and neurological experiments on the following topics:

  • Individual behavior in certain environments: basic choice theory, revealed preference, binary choice. Experimental and neuro-experimental evidence, value elicitation. Context dependence, anchors, endowment effect, default bias. Applications: choice architecture.
  • Individual behavior in uncertain environments: risk aversion, expected utility, prospect theory, ambiguity aversion. Experimental and neuro-experimental evidence, estimation, and preference elicitation. Applications to financial decision making.
  • Testing Game Theory. Economic games as a device for investigating social phenomena.
  • Design and Analysis Experiments: causality and comparison with other empirical methods, treatment design and elimination of confounds, experimental implementation, basic statistical tests.
  • Market Experiments, Field Experiments.

 

Advances: Economic decision models based on models of the brain and mind.


Detailed Description of Assessment Methods

All exams for this course are written.

For attending students:

There is a final exam: 50%. Homeworks: 25%. Experimental Project: 10%. Papers to be read and presented in class: 10%. Experiment participation: 5%.

For non attending students:

Attendance is strongly encouraged. There's a final exam, wich must be taken by all students.

 


Textbooks

Folder of class materials including notes, papers, excerpts from books.


Prerequisites
Microeconomics.
Last change 30/03/2011 12:00