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Behavioral Economics

Type of study Follow-up Master
Language of instruction English
Code 114-0539/01
Abbreviation BE
Course title Behavioral Economics
Credits 5
Coordinating department Department of Economics
Course coordinator doc. Ing. Aleš Melecký, Ph.D.

Osnova předmětu

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
13) Altruism, reciprocity and peer effect
14) Practical applications of behavioral economics

E-learning

lms.vsb.cz, course 114-0539/01 Behavioral Economics

Povinná literatura

BADDELEY, Michelle. Behavioural Economics: A Very Short Introduction. Oxford: Oxford University Press, 2017. 144 s. ISBN 9780198754992 .
O'SULLIVAN, Arthur. Behavioral Economics. Oxford: Oxford University Press, 2022. 472 s. ISBN 978-0197515921 .
THALER, Richard B. a Cass R. SUNSTEIN. Nudge: The Final Edition. New York: Penguin Books, 2021. 384 s. ISBN 978-0143137009.

Doporučená literatura

ARIELY Dan a Jeff KREISLER. Dollars and Sense. New York: Harper Collins, 2018. 288 s. ISBN 978-0062651211.
TALEB, Nassim N. Skin in the Game: Hidden Asymmetries in Daily Life. New York: Random House, 2020. 304 s. ISBN 978-0425284643 .
WILKINSON, Nick a Matthias KLAES. An Introduction to Behavioral Economics. 3rd ed. New York: ‎Bloomsbury, 2017. ISBN 978-1137524126 .