SØK725 Behavioral Economics (Autumn 2025)
- ECTS Credits:
- 7.5
- Responsible faculty:
- Avdeling for økonomi og samfunnsvitenskap
- Campus:
- Molde
- Course Leader:
- Andrew Muteti Musau
- Teaching language:
- English
- Study level:
- {code=HN, name=Second degree level}
- Duration:
- ½ year
Table of contents
Contents
The course is connected to the following study programs
Recommended knowledge
The student's learning outcomes after passing the exam
For decades, the standard model of behavior in economics has considered an agent as a perfectly rational, self‐interested utility maximizer with unlimited cognitive resources. This approach of modeling individual behavior has proved quite convenient, producing clear and testable predictions. However, over the past 30 years, psychologists, behavioral and experimental economists have documented behavior that is inconsistent with this standard model in ways that are important for economic outcomes. Understanding these behaviors, and their implications, is one of the most exciting areas of current economic inquiry. The aim of this course is to provide a grounding in the main areas of study within behavioral economics, including temptation and self‐control, fairness and reciprocity, reference dependence, bounded rationality and choice under risk and uncertainty. We will be using the book A course in Behavioral Economics by Erik Angner, but several lectures will also be based on published papers in the field. The lectures will cover the following topics:
- Introduction to Behavioral Economics
- Rational Choice under Certainty
- Behavioral Economics Methods
- Decision Making Under Certainty
- Choice Under Risk and Uncertainty
- Intertemporal Choice
- Topics in Behavioral Economics
- Behavioral Policy
Knowledge
After completion of the course, the student should be able to:
- identify and discuss important contributions to behavioral economics,
- understand the relevance of these contributions for analysis of economic behavior,
- in particular, understand under what conditions and in what ways these contributions may substantially alter predictions and/or policy recommendations based on previous economic models.
Skills
It is expected that the student will:
- be able to critically assess the importance of these contributions for the understanding of economic behavior, in particular, be able to discuss the following problem: How descriptively accurate assumptions about human behavior do we need for economic analysis?
- be able to use formal modelling approaches introduced in the course to solve simple, illustrative problems,
- be able to apply the ideas and intuitive arguments discussed in the course in their own applied economic analyses, such as analysis of specific policies not explicitly discussed in the course.
Competence
Furthermore, the student should:
- be able to read and understand project reports and journal articles that make use of the concepts and methods that are introduced in the course,
- be able to make use of the course content in their own academic work, for example in analyses that are part of their master’s thesis.
Forms of teaching and learning
Coursework requirements - conditions for taking the exam
- Mandatory coursework: Assignment(s)
- Courseworks given: 1
- Courseworks required: 1
- Presence: Not required
- Comment:
- Mandatory coursework: Oral presentation
- Courseworks given: 1
- Courseworks required: 1
- Presence: Not required
- Comment:
Exam
- Form of assessment: Digital school assessment - Inspera
- Proportion: 100%
- Duration: 4 hours
- Grouping: Individual
- Grading scale: Letter (A - F)
- Support material: -