Course Syllabus

Course description:

Behavioral Economics revises the standard economic model of human behavior by integrating insights from psychology into economic analysis. Grounded in behavioral theory and experimental evidence, the course examines how individuals make economic decisions in practice, and why these choices often depart systematically from strict rationality.

Students will develop analytical and empirical skills by engaging with competing theories of decision-making, evaluating experimental evidence, and analyzing data on real-world choices shaped by cognitive biases, social preferences, and social norms. A central component of the course is a group-based experimental project, in which students will design and conduct their own behavioral economics experiment, analyze the resulting data, and interpret their findings in light of relevant theory.

The course places particular emphasis on connecting behavioral economic theory with real-world applications. Two field studies and guest lectures from practitioners and academics will expose students to how behavioral insights are applied outside the classroom, providing hands-on experience with behavioral economics in European corporate and startup environments.

Learning objectives of the course:       

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

• Understand what behavioral biases are and identify domains where they exist
• Learn how one can exploit biases in markets and through interaction with other individuals
• Know how to address behavioral biases in individual decision making and interactive decisions
• Understand the tension between traditional economics and behavioral economics
• Be able to structure a research question on observed behavioral biases
• Be able to test your own behavioral hypothesis with experimental methods
• Gain the necessary skills to approach and understand behavioral economics literature

Readings:

The following textbooks can be picked up from the DIS library during arrivals week:

John List: “The Voltage Effect” (VE)

Uri Gneezy "Mixed Signals"

These are easy-to-read books with several real-life examples where behavioral economics and experiments can help us understand puzzling phenomena. Additionally, we do recommend that while reading the book, students should take notes of potential new ideas derived from the results explained in the books, and that could be used later for the semester project that students have to deliver. We explain the semester project in more detail below. In addition, several research papers for each lecture will be available on DIS Canvas.

Pre-requisites:

One course in intermediate or advanced microeconomics at the university level.

Approach to teaching:

The course mixes theory and empirical evidence from textbooks, research papers, practical exercises, and experiments. The course combines discussion-based class sessions, class-based games, teamwork, and team presentations through assignments. Your learning process depends on your active participation in class as well as outside the classroom. You are strongly encouraged to bring your observations into the classroom.

Expectations of the students:

We expect students to be curious and willing to engage in discussions. For the semester project, we expect students to observe behavior in the real world, reflect on it, and design an experiment to test their hypotheses.

Computer policy:

You can use laptops and tablets for note-taking purposes only when the teachers allow them. These devices (and maybe smartphones) may also be used for conducting online experiments, so please bring them to class.

Components of Course Grades:

1. Exam First Half (20 out of 100 points): There will be a midterm exam with questions in the readings from the first half of the term. Any material covered in Lectures 1 through 6 is fair game for the exam. It is an open-book exam that will last 1.5 hours.
2. Student participation (10 out of 100 points): This component covers active participation in class, performance in small assignments, and in-class experiments. Participation is not to be confused with mere attendance during the semester. A qualitative judgment of your contribution will be made by the teachers. Improper use of computers in class can, for instance, affect this assessment.
3. Semester Project (40 out of 100 points):
   Each student will be randomly assigned to a team.

1. 1. First, each student has to upload 2 pages with a description of 3 possible topics for the semester project. This needs to be uploaded to Canvas, further guidelines will be available. (5 points)
   2. Additionally, a 2-page peer review constructively criticizing the 3-topic proposal submitted by another class member should be uploaded on Canvas, further guidelines will be available. (5 points). Further discussion about the potential topics for the semester project is made with Alice and Sarah.
   3. Building upon the two previous assignments, each group will write a 1-page semester project proposal and upload it to Canvas. If the project proposal is submitted on time and the group satisfactorily defends their proposal, the group can obtain up to 5 points.
   4. Thereafter, based on eventual feedback and all previous assignments, each group will write a 1-page document with the description of the experimental design and upload it to Canvas. (up to 5 points).
   5. Each group will write an 8-page semester project report (also to be uploaded on Canvas).
   6.  Finally, each group has to present and defend the project at the end-of-semester Showcase. The written report and the presentation together count towards the grading of the semester project up to 20 points.

Minor funding is available for conducting the experiments for the semester projects, which will be delivered in cash to one of the group members.

The uploading to Canvas step is part of the completion of each task and deadline. 

It is expected that the distribution of work for the semester project is evenly split among the members of each group. It is up to the members of each group to make sure that all the members contribute equally to the semester project and no free-riding occurs. If any group is having free-riding issues, group members should contact the instructors, and measures will be taken on a case-by-case basis.

4. Class presentations (10 out of 100 points): Each group will make 20-minute presentations, occurring throughout the semester. Groups will find a current “real life” unsolved/understudied problem (using news articles, magazines, blogs, papers, etc) that is related to the topic of the lecture of the day assigned to them. The presentation must emphasize what traditional economics would say about the problem and compare it to what behavioral economics has to say about the problem. Additionally, the presentation can include comments on the suggested solutions by both approaches, as well as include the pros and cons of each suggested solution. Finally, the presentation should give some recommendations to solve the problem.
5. Exam Second Half (20 out of 100 points): This exam is similar to the first-half exam, but covers material from the second part of the course. Any material covered in Lectures 7 through 10 is fair game for the exam. It is an open-book exam that will last 1.5 hours.

Components of Grading (summary):             

1. Exam First Half                                                       = 20 points (individual evaluation)                 
2. Exam Second Half                                                  = 20 points (individual evaluation)                        
3. Student Participation + experiments                   = 10 points (individual evaluation)                    
4. Semester project:            
   4.1. Topic Proposal and Peer Review              = 10 points  (individual evaluation)                     
   4.2. Semester Project Proposal                            = 5 points (group evaluation)               
   4.3. Experimental Design Proposal                      = 5  points (group evaluation)              
   4.4. Semester Project Report + Presentation     = 20 points (group evaluation)                  
5.  Class Presentations                                              = 10 points (group evaluation)    

Total                                                                             = 100 points                 

 

Faculty                                                                         

Sarah Zaccagni

2026 -  Present     Assistant Professor at Danish Technical University

2023 -  2026         Assistant Professor at Århus University

2020 – 2023         Post-doctoral Fellow at University of Copenhagen

2016 - 2020         Ph.D. at Collegio Carlo Alberto and University of Turin

Website:       https://www.sarahzaccagni.com/      

Alice Pizzo

2026 -  Present    Assistant Professor at Copenhagen Business School

2022 – 2025        Post-doctoral Fellow at Copenhagen Business School

2018 –  2021       Ph.D at University of Copenhagen

Website:   https://www.alicepizzo.com/