Economics is essentially about interaction between people. Individuals interact in markets, as buyers and sellers, but also in organizations, on the internet, in politics, on the street, and at home. Standard economics models this interaction as a game between rational players who pursue their self-interest and arrive at an equilibrium. The current course presents evidence that actual behavior often deviates from the standard model. Individuals make mistakes, they learn from others, they follow social norms about fairness and reciprocity, they care for the well-being of others (but can also envy others), they are concerned about their image, and they are driven by emotions. The course shows how standard game theory can be adjusted to better capture actual behavior, and discusses applications in areas such as price competition, wage bargaining, charitable giving, cooperation in teams, incentives and control, sustainable behavior, support for redistribution, and cultures differences. Apart from (interactive) lectures, the course involves assignments, and students will also conduct their own research project.
Type of instructions
Lectures and interactive lectures
Type of exams
written exam, assignments, presentation
- Cartwright, E., Behavioral Economics, Third Edition, Routlegde, 2018, ISBN 978-1-138-09712-4
- set of key papers..