This course offers an introduction to behavioral economics for advanced undergraduates. Behavioral economics attempt to provide a more realistic foundation for modeling economic behavior by extending the standard economic assumptions of rationality and self-interest. In doing so, behavioral economics develops economic models with better predictive power.
The course will take students to an academic journey where assumptions, implications and failures of standard microeconomic models will be revisited. Then, alternative models with more realistic psychological foundations will be discussed and their analytical implications will be assessed. Finally, the policy implications of these more realistic models will be analyzed. Examples of successful policies grounded in behavioral economics will be studied over the course.
Syllabus (available on E_AULAS).