BEHAVIORAL ECONOMICS

ECO378

Course Code: ECO378
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;

Should have learned the basic principles and assumptions of behavioral economics, a field which is shaped by the advences 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 traditional economics within the lenses of behavioral economics in a much more realistic way and have the ability of applying the findings of behavioral economics in designing appropriate policies

Mode of Delivery

Face to face

Prerequisites

Recommended Optional Programme Components

Course Description

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

Course Contents

WEEK	TOPICS
1^st Week	Introduction to Behavioral Economics
2^nd Week	The History and Methodology of Behavioral Economics, and Experimental Economics
3^rd Week	Traditional (Neoclassical) Economics: Main Assumptions, Pioneers and Their views; Limited Rationality
4^th Week	Marginalism, Preferences, Rationality and Utility Maximisation
5^th Week	Loss Aversion and Endowment Effect; Mental Accounting
6^th Week	Heuristics and Biases
7^th Week	Midterm
8^th Week	Systematic deviations from rationality
9^th Week	Prospect Theory
10^th Week	Mind: System 1 and System 2
11^th Week	Manners and Moods: Priming, Moods and Personality, Social Norms
12^th Week	Behavioral Public Policies, Nudge Theory and Choice Architecture; Behavioral Economics and Other Fields of Economics
13^th Week	Behavioral Economics, Happiness and Subjective Well-Being
14^th Week	The Future of Behavioral Economics

Recommended or Required Reading

Nick Wilkinson, Matthias Klaes (2018), An Introduction to Behavioral Economics, MacMillan
Hatime Kamilçelebi (2019), Davranışsal İktisat, IJOPEC Publication
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

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

English

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