Course Syllabus

Behavioral Economics: European Case Studies

Description of the Course

Behavioral Economics is revising the standard economic model of human behavior by integrating psychological research and economic science. This course is based on new theory and experiments by examining actual economics related human behavior. The analytical skills of the students will be developed through work with conflicting theories and with data on choices made by people based on social norms that contradict the strictly rational model. We relate this to how behavior and norms are different in the Nordic and European countries as compared to the American research material presented in class.

Learning Objectives       

By the end of this course, you 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 a range of behavioral biases (in individual decision making and interactive decisions) have been addressed in the behavioral economics literature
• Understand the tension between traditional economics and behavioral economics

Required Texts

Richard Thaler:  Misbehaving
Richard Thaler: Nudge

These are easy-to-read books with several real-life examples where behavioral economics can explain puzzling phenomena. In addition to understanding how Behavioral economics (BE) has come to be, the books will give us insight into the areas where BE challenges directly standard economics as well as taking us through the areas where policies are being put in place in Europe which take advantage of the insights it provides.

These two books will be supplemented with a range of articles on current topics relating to coursework.

Approach to Teaching

The course mixes theory from texts and research papers. The course combines discussion-based class sessions, team work, 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 and to come to class having done the readings so you can in fact participate.

Note on the Use of Electronic Devices in the Classroom

Laptop, tablets, and smartphones are NOT to be used in class.  Tests and quizzes will be online, so please bring laptops to class on exam days- 

Components of Course Grades:

1. Pre-Class Quizzes (20%): There will be regular pre-classes quizzes on the reading for the day.  They must be completed before 9:00am of the day in Question.  If students are late submitting the quiz, they receive zero points for that quiz.
2. Exam First Half (20%): There will be a midterm exam with questions in the readings from the first half of the course. Any material covered in lectures is fair game for the exam. It is a closed-book exam that will last 1 hour.
3. Student participation (20%): This component covers active participation in class, performance in small assignments, in-classroom experiments and field experiments to be run during the field trips.  Participation is not to be confused with mere attendance. A qualitative judgment of your contribution will be made by the instructor and improper use of computers in class can for instance affect this assessment.
4. Class presentations (20%): Each student will make one 10-minute presentation on a current “real life” unsolved/understudied problem (using news articles, magazines, blogs, papers, etc...) that is related to the course. 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 recommendation to solve the problem.
5. Exam Second Half (20%): This exam is similar to the first exam, but covers material from the entire course.  It is a closed-book exam that will last 1 hour. .

Faculty                                                                         

The lecturer has been a professional economist working with the UN, governments, private companies, and social organisations for a number of years across Europe and Africa.  He completed his undergraduate studies at the University of California (Santa Cruz and Berkeley) and his postgraduate work at the London School of Economics.

Academic Regulations  

Please make sure to read the Academic Regulations on the DIS website. There you will find regulations on:

• Course Enrollment and Grading
• Attendance
• Coursework, Exams, and Final Grade Reports

 DIS - Study Abroad in Scandinavia - www.DISabroad.org