PD Dr. Markus Pasche

The examination consists of several parts: there are 2 assignments (maximum score 20 each) during the semester and a final written exam (maximum score 60). The scores of all assignments and the score of the exam are added and translated into a grade. Students can also combine the points achieved in an assignment with the resit exam.

If the first part of the examination is due within the usual registration period of the examination regulations, the special regulations issued by the examination board apply for the latest possible registration and deregistration before the first partial performance.

to be announced

English

684 M.Sc. Economics; 276 M.Sc. Wirtschaftsmathematik: Wahlpflichtmodul

Lecture (2 h per week), Exercise and guided reading (2 h per week)

Methodological foundations of Behavioral Economics; Expected utility theory and its methodological and empirical critique, results from experimental economics; Other-regarding preferences, trust and reciprocity: theories and experimental results, evolution of preferences; Rational expectations: theory, methodological and empirical critique, alternative hypotheses, problem of fundamental uncertainty; Models of bounded rationality and heuristic behavior; Policy implications of behavioral economics, i.e. nudging

• Students are able to critically reflect the methodological foundations of standard economic theory (rational choice).
• They know a broad range of experimental results which provide evidence for violations of expected utility theory but also evidence for various forms of other-regarding preferences. They understand how a proper experimental design can help to decide whether observed data do (not) fit to given hypotheses.
• Students know different routes how to model other-regarding preferences, reciprocity or the impact of emotions.
• They have developed a broader notion of rationality which also includes norm-guided or heuristic behavior, and they can distinguish and apply different paradigms of theorizing about economic decision behavior.
• Students are able to derive policy implications from the insights of behavioral economics; they can critically evaluate different forms of ”nudging”.