Ateneo - UPO

Behavioral Economics increases the explicative power of economic theory by introducing more realistic psychological fundamentals. Object of the course is that of introducing the approach and methods of behavioral economics, with a particular attention to the experimental approach, analysing its main contributions and applications, and its new lines of research. The course will introduce the subject, its methodology, with particular attention to experimental economics. It will survey the topics of: (1) Individual choices under risk and uncertainty. Expected utility Theory. The axiomatic approach. Expected utility in the Machina triangle. The main paradoxes of choice. Experiments and theoretical developments in non-expected utility theory. (2) Prospect Theory. (3) Intertemporal choice. (4) Elements of behavioural finance.

All the material will be distributed during the course.

Object of the course is that of introducing the approach and methods of behavioral economics, with a particular attention to the experimental approach, analysing its main contributions and applications, and its new lines of research. The course will introduce the subject, its methodology, with particular attention to experimental economics.

Knowledge of quantitative methods at the introductory level

There will be lectures and exercises

Students with disabilities or with Specific Learning Disorders (SLD) or with Special Educational Needs (SEN) can request specific services and tools dedicated to them by contacting the Development and Coordination Staff for Careers and Services for Students and consulting the dedicated page on the university website: https://uniupo.it/it/servizi/servizi-studenti-disabili-e-dsa Students with disabilities, SLD, SEN, once they have contacted the university staff, can reach out to the professor responsible for the course regarding the adaptation of exam methods in relation to educational aspects.

Written exam with exercises

Individual choices under risk and uncertainty. Expected utility Theory. The axiomatic approach. Expected utility in the Machina triangle. The main paradoxes of choice under risk. Experiments and theoretical developments in non-expected utility theory. Prospect Theory. The main paradoxes of choice: framing effect, preference reversal, endowment effect. Elements of behavioural finance.

To provide a knowledge of the economy in an interdisciplinary perspective, highlighting its relations with psychology