BEHAVIORAL ECONOMICS

ECON378

Course Code: ECON378
Semester: -
Theory+Practice: 3 + 0
ECTS: 5

Course Type

Elective Course

Course Level

Bachelor's Degree

Year of Study

Semester

ECTS

Name of Lecturer(s)

Learning Outcomes

At the end of this course, the students;

Have learned the basic principles and assumptions of behavioural economics, a field which is shaped by the advances in psychology and neuroscience
Understand to take into account the effects of irrationality, biases, cognitive and heuristic factors on the individual decision making
Capture the assumptions and policy recommendations of traCapture the assumptions and policy recommendations of traditional economics within the lenses of behavioural economics in a much more realistic way and have the ability of applying the findings of behavioural economics in designing appropriate policies.

Mode of Delivery

Face to face

Prerequisites

Recommended Optional Programme Components

ECON205, ECON214

Course Description

The aim of the course is to provide an introduction to behavioural economics and a practical guide to applying behavioural economics tools to improve decision making and economic policy enforcement. This course covers models of the main topics of behavioural economics which mainly studies the violations from the standard assumptions of the mainstream economics.

Course Contents

WEEK	TOPICS
1^st Week	Introduction to Behavioural Economics, The History of Behavioural Economics
2^nd Week	Early Interactions between Economics and Psychology, Methodology
3^rd Week	From Neoclassical Economics to Behavioural Economics: Critique of Assumptions (From Homo Economicus to Homo Sapiens)
4^th Week	Decision-Making Behaviours: Classical Theory and Behavioural Findings
5^th Week	Behavioural Findings in Decision Theory ? Are People Always Rational?
6^th Week	Mental Accounting and Decision Frames: Framing Effect, Status Quo Bias
7^th Week	Midterm
8^th Week	Systematic Deviations from Rationality
9^th Week	Prospect Theory
10^th Week	How Does the Mind Work? System 1 and System 2
11^th Week	Psychological and Social Factors Shaping Behaviours
12^th Week	Behavioural Public Policies, Nudge Theory and Choice Architecture; Behavioural Economics and Other Fields of Economics
13^th Week	Methodology in Behavioural Economics: Laboratory and Field Experiments
14^th Week	Applications of Nudges in Environmental Policy

Recommended or Required Reading

Nick Wilkinson, Matthias Klaes (2018), An Introduction to Behavioral Economics, MacMillan
Daniel Kahneman (2015, çeviri basımı), Hızlı ve Yavaş Düşünme, Varlık Yayınları
Richard Thaler (2019, çeviri basım), Akıllı İnsanların Mantıksız Kararları, Pegasus Yayınları
Richard H. Thaler ve Cass R. Sunstein (2017, çeviri basımı),Dürtme (Nudge), Pegasus Yayınları
Dan Ariely (2012, çeviri basımı), Akıldışı Ama Öngörülebilir,Optimist Yayınları
Philip Corr ve Anke Plagnol (2019), Behavioral Economics: The Basics, Routledge
Dumludağ, D.vd., (2015). İktisatta Davranışsal Yaklaşımlar, İmge Yayınları

Planned Learning Activities and Teaching Methods

Lecture
Discussion

Assessment Methods and Criteria

	Quantity	Percentage (%)
Mid-term	1	40
Total(%)		40
Contribution of In-term Studies to Overall Grade(%)		40
Contribution of Final Examination to Overall Grade(%)		60
Total(%)		100

ECTS Allocated Based on Student Workload

Activities	Quantity	Duration (Hour)	Total Workload (Hour)
Midterm exam	1	1	1
Preparation for Quiz	0	0	0
Individual or group work	14	3	42
Preparation for Final exam	1	39	39
Course hours	14	3	42
Preparation for Midterm exam	1	25	25
Laboratory (including preparation)	0	0	0
Final exam	1	1	1
Homework	0	0	0
Total Work Load			150
Total Work Load / 30 (h)			5
ECTS Credit of the Course			5

Language of Instruction

Turkish

Work Placement(s)

Programme Qualifications / Learning Outcomes

	LO1	LO2	LO3
K1	X
K2		X
K3		X
K4		X
K5		X
K6		X
K7
K8		X
K9	X
K10			X
K11			X
K12			X
K13			X