Teaching code

4S008965

Teacher

Luca Zarri

Coordinator

Luca Zarri

Credits

6

Language

Italian

Scientific Disciplinary Sector (SSD)

SECS-P/02 - ECONOMIC POLICY

Period

Secondo semestre (lauree) dal Feb 20, 2023 al May 31, 2023.

Lessons timetable Moodle Seminars 0

Learning objectives

The major goal of this course is to provide students with a rigorous understanding of a wide array of decision processes involving key actors within advanced economic systems, with regard to both financial markets and the real economy. Several key issues within the behavioral economics and finance literature – including consumers’, firms’ and investors’ “bounded rationality” – will be addressed through lectures as well as various forms of interactive teaching managed through the E-learning platform. Students are expected to develop the ability to analyze real economy and financial market demand-supply interactions in which players’ bounded rationality plays a relevant role.

Prerequisites and basic notions

Familiarity with basic microeconomic notions is required, with special regard to the logic of consumer choice and to game theory. In this regard, the chapters focusing on consumer theory and game theory in H. Varian's “Microeconomics” handbook are recommended.

Program

1. Introduction. What is "behavioural economics"? The two "souls" of behavioural economics: bounded rationality and non-selfish behaviour.
2. Part One. "Bounded rationality" in (i) firm behavior; (ii) consumer choice; (iii) demand-supply interactions and (iv) financial judgments and decision-making ("Behavioural Finance").
3. Part Two. Standard game theory and behavioural game theory. Social dilemmas and other strategic interaction scenarios: experimental evidence on "social preferences'".

Bibliography

Didactic methods

The course includes both frontal teaching activities and participatory teaching actions. The latter - to be implemented through various forms of interactive teaching managed through the E-learning platform - will be systematically integrated into the frontal teaching activity in order to improve its overall effectiveness.
During the course, the specific teaching materials will be made available before each lecture on the E-Learning platform.
Further teaching materials will be provided online (e.g. op-eds from the website lavoce.info), through the E-learning service, within the specific webpage prepared for this course.
Classroom attendance, though not compulsory, is highly recommended.

Learning assessment procedures

60-minute written exam, aimed at testing students' understanding of a number of economic and social phenomena that characterize contemporary advanced economic systems and that can be fruitfully addressed through the lens of the major theoretical constructs and empirical findings (including experimental evidence) obtained in the last years within the framework of behavioural economics and behavioral finance. The exam will be based on a) multiple choice questions; b) an open-ended question and c) an exercise based on behavioral game theory topics.

Evaluation criteria

The first component of the written exam (multiple choice questions) assigns a maximum of 16 points out of 30. The second component (open-ended questions + exercise) assigns a maximum of 14 points out of 30.

Criteria for the composition of the final grade

First component: 16 points (out of 30)
Second component: 14 points (out of 30)

Exam language

Le studentesse e gli studenti che partecipano al programma Erasmus+ possono richiedere di sostenere la prova in lingua inglese. La richiesta deve pervenire con una settimana di anticipo rispetto alla data dell'appello a cui ci si iscrive.