Behavioural Economics makes assumptions about human agents that are grounded in empirical work in psychology and experiments (whether in the laboratory or in the field). This course will focus on conceptual foundations (core assumptions and models), problem solving and applications to topics such as psychology of poverty, boundedly rational consumers and behavioural finance: the emphasis will be on insights about human behaviour and institutions that are new, interesting and policy-relevant. This course is relevant for both students in development and finance programmes.

There will be one two-hour lecture per week for 10 weeks. Also, there will be 4 tutorials.

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ILO (covered)

This course aims to provide an introduction to Behavioral Economics focusing on conceptual foundations (core assumptions and models), problem-solving and applications to a number of topics such as psychology of poverty, boundedly rational consumers and behavioral finance: the emphasis will be on insights about human behavior and institutions that are new, interesting and policy-relevant.

By the end of this course students will be able to: 

a) understand, describe and explain some core concepts and models in Behavioral Economics,

b) solve problems using their knowledge of core concepts and models in Behavioral Economics

c) use core concepts from behavioural economics to analyse decision-making, institutional design and policy interventions in a number of different settings/contexts.

Students must submit at least 75% by weight of the components (including examinations) of the course's summative assessment.