Behavioral Economics
Keywords |
Classification |
Keyword |
OFICIAL |
Economics |
Instance: 2023/2024 - 1S
Cycles of Study/Courses
Teaching language
English
Objectives
Behavioral Economics combines insights from Psychology and Economics to understand how people process information and make decisions, paying particular attention to common deviations from purely rational and self-interested decisions.
The main objective of this course is to raise awareness of future decision makers (economists, managers, consultants or politicians) about these deviations and the psychological processes that lead to them, so that these are taken into account in the definition of marketing strategies, in the management of human resources and in decision-making in general.
Learning outcomes and competences
After this course, students (future decision-makers) should be able to:
- Recognize the behavioral factors that are present in a given context.
- Understand how behavioral factors influence own decisions, as well as the decisions of other individuals and groups.
- Regulate own behavior by having in mind possible behavioral biases which can be harmful, thereby improving own decision-making.
- Influence the behavior of other individuals and groups, either partners or rivals, by harnessing or eliminating behavioral biases.
Working method
Presencial
Program
- Introduction to Managerial Decision Making
- Overconfidence
- Common Biases
- Bounded Awareness
- Framing and the Reversal of Preferences
- Motivational and Emotional Influences on Decision Making
- The Escalation of Commitment
- Fairness and Ethics in Decision Making
- Common Investment Mistakes
- Making Rational Decisions in Negotiations
- Negotiator Cognition
- Improving Decision Making
Mandatory literature
Max H Bazerman;
Judgment in managerial decision making. ISBN: 0-471-39887-X
Complementary Bibliography
Dan Ariely;
Previsivelmente irracional. ISBN: 978-989-8206-18-3
Daniel Kahneman;
Thinking, fast and slow. ISBN: 978-0-141-03357-0
Richard H. Thaler;
Nudge. ISBN: 978-0-300-12223-7
Wilkinson, Nick; Klaes, Matthias; An Introduction to Behavioral Economics
Teaching methods and learning activities
Classes; Presentations by students
Evaluation Type
Distributed evaluation with final exam
Assessment Components
Designation |
Weight (%) |
Apresentação/discussão de um trabalho científico |
15,00 |
Exame |
65,00 |
Trabalho escrito |
20,00 |
Total: |
100,00 |
Amount of time allocated to each course unit
Designation |
Time (hours) |
Apresentação/discussão de um trabalho científico |
10,00 |
Estudo autónomo |
30,00 |
Frequência das aulas |
21,00 |
Trabalho escrito |
20,00 |
Total: |
81,00 |
Eligibility for exams
Students should attend at least 75% of the classes.
Calculation formula of final grade
Group assignment - 35%
Written test - 65%