Behavioural Economics

About

Behavioural economics is one of the fastest growing branches of economics and relaxes many of the assumptions of traditional economic theory.
In this course, we will consider the traditional theories and models of economics and analyse how behavioural economics begins to move away from these models, by relaxing traditional assumptions. By doing this, behavioural economics looks to explain how agents actually behave in practice and what factors can sometimes explain seemingly irrational behaviour. The course will expose students to several major topics in Behavioural Economics and will look to link theory with empirical applications.

We will analyse the role of behavioural economics in the context of both consumer and firm behaviour. In particular, the course will focus on departures from neoclassical preferences and from rational expectations.

Course leader

Andreas Markoulakis

Target group

This course is open to students who are studying or have previously studied Economics at University level. You should attach your most recent transcript or provide a screenshot of your modules from your student portal as evidence when you apply.

Students must be aged 18 or over by the time the Summer School commences and have a good understanding of the English language.

Course aim

The aim of this course is to introduce students to the field of behavioural economics. The broad objective will be to insert more behavioural realism into economic theory and thus provide students with a better understanding of the important role that Behavioural Economics plays in explaining consumer and producer behaviour. By first ensuring an understanding of the traditional models of economics, the course will then aim to examine evidence that shows some departure from the assumptions made in the canonical economic model. We then aim to show how such departures can be formalized theoretically and how the resulting models find empirical confirmation.

By approaching behavioural economics in this way, the course aims to provide students with an understanding of the development of behavioural economics and how it builds on and then departs from traditional theory. It will consider examples such as the way in which firms can frame choices and nudge consumers to behave in a certain way. By drawing on empirical results and applying theoretical models to real-world examples, students will develop an understanding of the important lessons that this relatively new branch of economics can convey.

Fee info