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Terminated in academic year 2020/2021

Behavioral Economics

Type of study Follow-up Master
Language of instruction Czech
Code 114-0339/01
Abbreviation BE
Course title Behavioral Economics
Credits 5
Coordinating department Department of Economics
Course coordinator doc. Ing. Aleš Melecký, Ph.D.

Subject syllabus

1) Introduction to Behavioural Economics
• Antecedents of behavioural economics
• Methodology of economics
• Theoretical approaches in behavioural economics
• Experimental method in economics
• Examples of behavioural evidence
2) Behavioural Decision under Risk and Uncertainty
• Classical decision theory
• Subjective expected utility theory
• Violations of expected utility theory
3) Behavioural Models of Decision Making
• Rank dependent utility theory
• Prospect theory
• Human behaviour for extreme probability events
• Risk preferences and time preferences
4) Applications of Behavioural Decision Theory
• Endowment effect and exchange asymmetries
• Myopic loss aversion
• Goals and contracts as reference points
• Moral hazard, loss aversion, and optimal contracts
5) Present Bias and Time-inconsistency
• Evidence on temporal human choice
• Behavioural models of time discounting
• Applications of present-biased preferences
6) Behavioural Game Theory
• Evidence of strategic human choice
• Models of behavioural game theory
7) Behavioural models of learning
• Evolutionary game theory
• Models of learning
• Stochastic social dynamics
8) Emotions
• Emotions of human behaviour
• Interactions between emotions and cognition
9) Bounded Rationality
• Judgment heuristics
• The law of small numbers
• Conjunction fallacy
• The availability heuristics
10) Behavioural Finance
• Neoclassical theory of capital markets and its limitations
• Behavioural perspective on investors` behaviour
• Speculative bubbles as a characteristics of market anomalies
11) Social Preferences and Labour Economics
• Evidence on social behaviour
• Models of fairness and reciprocity
• Applications in labour economics
12) Economics of information
• Moral hazard and incentive contracts
• Adverse selection and signaling
• Economics and psychology

Literature

ARIELY Dan a Jeff KREISLER. Peníze a zdravý selský rozum. Praha: Práh, 2019. ISBN 978-80-7252-796-0.
KAHNEMAN, Daniel, Olivier SIBONY a Cass R. SUNSTEIN. Šum. Brno: Jan Melvil, 2021. 408 s. ISBN 978-80-7555-148-1
O'SULLIVAN, Arthur. Behavioral Economics. Oxford: Oxford University Press, 2022. 472 s. ISBN 978-0197515921 .

Advised literature

TALEB, Nassim N. Nasadit vlastní kůži. Praha: Paseka, 2019. 324 s. ISBN 978-80-7637-025-8 .
THALER, Richard B. Neočekávané chování. Praha: Argo/Dokořán, 2017. 380 s. ISBN 978-80-257-2121-6.
THALER, Richard B. a Cass R. SUNSTEIN. Nudge: The Final Edition. New York: Penguin Books, 2021. 384 s. ISBN 978-0143137009.