Modulhandbuch (Module manual)

M.184.4183 Behavioral Economics: Theory, Analysis and Application
(Behavioral Economics: Theory, Analysis and Application)
Koordinator (coordinator): Dr. Behnud Djawadi
Ansprechpartner (contact): Sabrina Schäfers (sabrina.schaefers[at]
Credits: 5 ECTS
Workload: 150 Std (h)
Semesterturnus (semester cycle): WS
Studiensemester (study semester): 1-4
Dauer in Semestern (duration in semesters): 1
Lehrveranstaltungen (courses):
Nummer / Name
(number / title)
(contact time)
Status (P/WP)
(group size)
a) K.184.41831 / Behavioral Economics: Theory, Analysis and Application Vorlesung 28 Std (h) 84 Std (h) P
b) K.184.41832 / Behavioral Economics: Theory, Analysis and Application Übung 8 Std (h) 30 Std (h) P
Wahlmöglichkeiten innerhalb des Moduls (Options within the module):
Empfohlene Voraussetzungen (prerequisites):

​No conditions are known.

Inhalte (short description):

​Behavioral economics has become an established sub discipline of economics that seeks to increase the understanding of economic behavior and decision-making. While maintaining the core principles of economics, namely optimization and equilibrium, behavioral models revise the assumptions that people are entirely selfish and fully rational in their choices and use insights from psychology, sociology, anthropology and neuroscience to make economic models more accurate and reconcilable with empirical findings that cannot be explained by standard economic frameworks. As the growing empirical evidence shows, especially through the method of experimental economics that allows economists to test theories about human behavior in controlled conditions, behavioral models continue to gain prominence in predicting and explaining economic behavior and are used in a wide array of economic applications. As Dhami (2016) stated: “Behavioral economics is possibly the fastest growing and most promising area in economics”.
In this course, we will take a closer look at some selected topics of behavioral economics. We first start with an introduction by giving some insights to this field and briefly present the method of experimental economics as an empirical way to test the predictions of the discussed models. Single topics that will subsequently follow include behavioral models of decision-making and their applications (e.g. prospect theory, mental accounting), bounded rationality (judgement, biases and heuristics), behavioral models of other-regarding preferences such as fairness, behavioral time discounting, behavioral market design and incentives, and behavioral interventions known as nudges.
For each topic we will present the main features of the model(s) (a little bit of math is required, but only on a very basic level), demonstrate how the underlying assumptions differ from standard economic models, highlight the empirical evidence and discuss how these insights can be applied to different economic domains.
In addition to the weekly lectures, there will be tutorials taking place every two or three weeks to exercise on the topics and deepen the contents of the course.

Lernergebnisse (learning outcomes):
Fachkompetenz Wissen (professional expertise):

​Students are familiar with the foundations of behavioral economics.
Students gain a deeper understanding about how well concepts of behavioral economics predict and explain human behavior.

Fachkompetenz Fertigkeit (practical professional and academic skills):

​Students apply concepts of behavioral economics to problems in management.
Students understand the motivation and principles of the underlying behavioral models, and are able to describe, analyze, and discuss mainly experimental study designs on sound scientific reasoning.

Personale Kompetenz / Sozial (individual competences / social skills):

​Students actively participate in lectures and exercises, take part in classroom experiments, and discuss the contents of the course interactively with the course instructors and the other participants.

Personale Kompetenz / Selbstständigkeit (individual competences / ability to perform autonomously):

​Students are able to independently prepare for the course using English-language literature.
Students are able to apply concepts of behavioral economics through independent work on exercises.

Prüfungsleistungen (examinations)
Art der Modulprüfung (type of modul examination): Modulabschlussprüfung
Art der Prüfung
(type of examination)
a) Klausur 60 Minuten 100.00 %
Studienleistung / qualifizierte Teilnahme (module participation requirements)
Voraussetzungen für die Teilnahme an Prüfungen (formal requirements for participating in examinations)
Voraussetzungen für die Vergabe von Credits (formal requirements for granting credit points)
Die Vergabe der Credits erfolgt, wenn die Modulnote mindestens „ausreichend“ ist
Gewichtung für Gesamtnote (calculation of overall grade)
Das Modul wird mit der Anzahl seiner Credits gewichtet (Faktor: 1)
Verwendung des Moduls in den Studiengängen (The module can be selected in the following degree programmes)
M.Sc. IBS, M.Sc. BWL, M.Sc. International Economics and Management, M.Sc. Management, M.Sc. Management Information Systems, M.Sc. Taxation, Accountingand Finance, M.Sc. Winfo, M.Sc. Wirtschaftspädagogik, M.Ed. Wirtschaftspädagogik
Umfang QT (participation requirements):
Lernmaterialien, Literaturangaben (learning material, literature):
Camerer, C.F., Loewenstein, G. and Rabin, E. (eds.) (2003): Advances in Behavioral Economics, Princeton: Russel Sage Foundations.
Dhami, S. (2016): The Foundations of Behavioral Economic Analysis. Oxford: Oxford University Press.
Diamond, P., and Vartiainen, H. (eds) (2007): Behavioral Economics and Its Applications, Princeton: Princeton University Press.
Sonstige Hinweise (additional information):
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