Behavioural Economics

ECTS: 6

Year: 2

Semester: II

Instructors: Chiara Rapallini

The course will introduce students to the key concepts of the behavioral economic literature, like bounded rationality, the use of heuristics for complex choices, the prospect theory, framing effect, etc. In other words, standard issues of the economic theory, like the choices under risk and social preferences, will be analyzed with the lens of the behavioral approach. Together with the theory, several applications of the behavioral approach to the saving decisions, to the wage's definition and its rigidity, to the public goods provision, to the role played by incentives and punishment for economic behavior will be discussed. A specific attention will be given to the theory of "nudging" for designing policies. Students will be introduced to the experimental methods and will experience a few practical sessions in the lab.