Courses Exchange Display 2018-2019

Course Description To PDF
Course title Economic Psychology
Course code EBC2103
ECTS credits 6,5
Assessment None
Period Start End Mon Tue Wed Thu Fri
2 29-10-2018 21-12-2018 X/E X/E
Level Intermediate
Coordinator Peter Werner
For more information:
Language of instruction English
Acquiring a structured insight into the important roles of psychological factors and processes in the judgments, decision-making and well-being of economic agents
Learning about the difference in approach between psychology and economics
Learning about the relations between psychology and economics
Increasingly, economists are discovering psychology as a means to enrich their models of economic behaviour and well-being and to give them a better foundation. The importance of this is illustrated by the fact that the Nobel prize winner in economics in 2002 was the distinguished psychologist Daniel Kahneman. He characterizes his research as a quest for the ‘logic of the irrational’. Adam Smith already recognized that economic, just like other, behaviour is motivated by an intriguing blend of ‘rational’ considerations and ‘irrational’ sentiments. The great challenge is to investigate the implications of the latter motives for economics.
This course aims to give an intensive introduction into this field. In the first nine sessions of the course the psychology and behavioural economics of judgment and decision-making are dealt with. Basic principles of rationality are compared with actual behaviour in making decisions. Next, students are introduced into the psychological and economic research on subjective well-being (happiness) and its socio-economic determinants (especially income). The importance of this research for economics and its policy implications will be highlighted. Students should realize that the course is not easy and that its material also includes some mathematical derivations.
Hastie, Reid and Robyn M. Dawes. Rational choice in an uncertain world: The psychology of judgment and decision making. Sage, 2010.
Articles and chapters from books.
Basic understanding of microeconomics (level comparable to: course Economics and Business), probability theory and mathematics (level comparable to course QM2)
An advanced level of English
Teaching methods Presentation / Lecture / Groupwork
Assessment methods Participation / Written Exam / Presentation
Evaluation in previous academic year For the complete evaluation of this course please click "here"
This course belongs to the following programmes / specialisations
Bachelor Economics and Business Economics - Economics and Management of Information Free Electives
Bachelor International Business Economics Electives
Bachelor Economics and Business Economics - Emerging Markets Economics Electives
Bachelor Economics and Business Economics - International Business Economics Economics Electives
SBE Exchange Bachelor Bachelor Exchange Courses
SBE Exchange Master Bachelor Exchange Courses
SBE Non Degree Courses Bachelor Courses