Decision Theory and Behavioural Economics

A.Y. 2018/2019
6
Max ECTS
60
Overall hours
SSD
SECS-P/02
Language
English
Learning objectives
The aim of this course is first to provide a grounding in the area of decision under risk adopting standard economic models. Using experimental evidence that shows how such models may miss some important features of decision making, the course will then present models that have been developed to reconcile the theory with the experimental evidence.
Expected learning outcomes
Undefined
Single course

This course cannot be attended as a single course. Please check our list of single courses to find the ones available for enrolment.

Course syllabus and organization

Single session

Responsible
Lesson period
First trimester
ATTENDING STUDENTS
Course syllabus
Objective and Subjective Uncertainty
Expected utility theory
Risk Aversion, certainty equivalent, risk premium.
Measurement of Risk Attitudes: Theory (Arrow-Pratt etc.)
Measurement of Risk Attitudes: Experiment (Comparison, Gender)
Risk and returns: stochastic dominance
State dependent utility
Expected utility: violations and paradoxes
Perception of probabilities: Probability weighting
(Cumulative) Prospect Theory
Reference dependent preferences
Time preferences and hyperbolic discounting,
Impulsivity
Self-Control and Temptation a la Gul-Pesendorfer
Myopic Loss Aversion
Assets and Bubbles
Disposition Effect
NON-ATTENDING STUDENTS
Course syllabus
Objective and Subjective Uncertainty
Expected utility theory
Risk Aversion, certainty equivalent, risk premium.
Measurement of Risk Attitudes: Theory (Arrow-Pratt etc.)
Measurement of Risk Attitudes: Experiment (Comparison, Gender)
Risk and returns: stochastic dominance
State dependent utility
Expected utility: violations and paradoxes
Perception of probabilities: Probability weighting
(Cumulative) Prospect Theory
Reference dependent preferences
Time preferences and hyperbolic discounting,
Impulsivity
Self-Control and Temptation a la Gul-Pesendorfer
Myopic Loss Aversion
Assets and Bubbles
Disposition Effect
SECS-P/02 - ECONOMIC POLICY - University credits: 6
Practicals: 40 hours
Lessons: 20 hours
Professor: Filippin Antonio
Professor(s)