Behavioral economics ERASMUS>EKO21

COURSE DESCRIPTION:

This course explores how psychological insights and cognitive biases affect economic decision-making. It aims to contrast traditional economic theories with behavioral models, emphasizing practical implications in finance, marketing, and public policy.

CONTENT:
1. Foundations of behavioral economics.
2. Heuristics and biases in decision-making.
3. Prospect theory and loss aversion.
4. Social preferences and fairness.
5. Nudging and behavioral interventions.
6. Case studies in market behavior.
7. Evaluation and exam.

Goals and objectives:
1. Understand deviations from rational behavior in economic contexts;
2. Analyze how cognitive factors influence choices;
3. Apply behavioral theories in practical domains like finance and policy.

Learning outcomes and assessment:
- Identifies behavioral mechanisms – assignments
- Analyzes decision-making errors – case discussions
- Applies behavioral strategies – project and final exam

Evaluation criteria:
Attendance and participation – 10%
Assignments and case analysis – 20%
Final exam – 70%