TÜRKÇE
ENGLISH
Information
| Unit | FACULTY OF ECONOMICS AND ADMINISTRATIVE SCIENCES |
| ECONOMICS PR. (ENGLISH) | |
| Code | ECOS308 |
| Name | Behavioral Economics |
| Term | 2024-2025 Academic Year |
| Semester | 6. Semester |
| Duration (T+A) | 2-0 (T-A) (17 Week) |
| ECTS | 5 ECTS |
| National Credit | 2 National Credit |
| Teaching Language | İngilizce |
| Level | Lisans Dersi |
| Type | Normal |
| Label | FE Field Education Courses E Elective |
| Mode of study | Yüz Yüze Öğretim |
| Catalog Information Coordinator | Dr. Öğr. Üyesi MUSTAFA ILDIRAR |
| Course Instructor |
Doç. Dr. ERHAN İŞCAN
(Bahar)
(A Group)
(Ins. in Charge)
|
Course Goal / Objective
This course aims to challenge the assumptions of traditional economic theories by examining how individuals exhibit irrational behaviors in economic decision-making. As an interdisciplinary field at the intersection of psychology and economics, behavioral economics focuses on bounded rationality, cognitive biases, social preferences, and decision-making mechanisms. Students will learn behavioral economic theories and their applications in finance, public policy, and business.
Course Content
Introduction to behavioral economics, differences between traditional and behavioral economics, bounded rationality and decision-making processes, cognitive biases and heuristics, loss aversion and framing effect, decision-making under risk and uncertainty, time inconsistency and self-control problems, social preferences and fairness perception, motivation, incentives, and reward systems, neuroeconomics and brain-based decision-making, consumer behavior and marketing strategies, behavioral finance and investment decisions, applications of behavioral economics in public policy, "nudge" theory and policy design, ethical concerns and critiques of behavioral economics.
Course Precondition
There are no prerequisites.
Resources
KAHNEMAN, Daniel. Thinking, fast and slow. Macmillan, 2011.
Notes
Thaler, R. H., & Sunstein, C. R. (2021). Nudge. Yale University Press.
Course Learning Outcomes
| Order | Course Learning Outcomes |
|---|---|
| LO01 | Explain the main differences between behavioral economics and traditional economics. |
| LO02 | Explains the impact of bounded rationality and cognitive biases on economic decision-making processes. |
| LO03 | Explains the decision-making process of individuals under risk and uncertainty. |
| LO04 | Applies behavioral economics theories to the areas of public policy, finance, and marketing. |
| LO05 | Explains neuroeconomics and brain-based decision-making processes. |
| LO06 | Explain the use of nudge theory in policy design. |
| LO07 | Explain the ethical and social implications of behavioral economics findings. |
Relation with Program Learning Outcome
| Order | Type | Program Learning Outcomes | Level |
|---|---|---|---|
| PLO01 | Bilgi - Kuramsal, Olgusal | Explain the importance of demand and supply in economy sciece and the well-running conditions of the market economy | 4 |
| PLO02 | Bilgi - Kuramsal, Olgusal | Define the role of pricing within the event advantage of the market economy | 3 |
| PLO03 | Bilgi - Kuramsal, Olgusal | Define the role of the state in economy, money and financial policies, the central bank and the structure of the market | 2 |
| PLO04 | Bilgi - Kuramsal, Olgusal | Perceive the costs and benefits arising from the global economy | |
| PLO05 | Bilgi - Kuramsal, Olgusal | Produce nymerical and policy options when confronted with problems | 4 |
| PLO06 | Bilgi - Kuramsal, Olgusal | Use quantitative and qualitative techniques of model building, decoding and interpretation | 5 |
| PLO07 | Bilgi - Kuramsal, Olgusal | Use the theory of economics in the analysis of economic events | 5 |
| PLO08 | Bilgi - Kuramsal, Olgusal | Use computer programs, do synthesis and present prepared data efficiently | |
| PLO09 | Bilgi - Kuramsal, Olgusal | Apply the methods of economic analysis. | 4 |
| PLO10 | Bilgi - Kuramsal, Olgusal | Analyze at conceptual level and aquire abiliy in comparing, interpreting, evaluating and synthesizing in order to develop solutions to problems | 5 |
| PLO11 | Bilgi - Kuramsal, Olgusal | Take responsibility individually and/or in a team, take leadership and work effectively | |
| PLO12 | Beceriler - Bilişsel, Uygulamalı | Follow innovative developments in the field being aware of the necessity of lifelong learning and improving him-/herself | 3 |
| PLO13 | Beceriler - Bilişsel, Uygulamalı | Use of different sources about an unfamiliar field within academic principles, synthesize gained data and present effectively | |
| PLO14 | Yetkinlikler - Bağımsız Çalışabilme ve Sorumluluk Alabilme Yetkinliği | Use Turkish and at least one foreign language in accordance with the requirements of academic and work life | |
| PLO15 | Yetkinlikler - Bağımsız Çalışabilme ve Sorumluluk Alabilme Yetkinliği | Understand and interpret related peoples´ feelings, thoughts and behaviours correctly; express him-/herself accurately in written and oral language | 3 |
| PLO16 | Yetkinlikler - Öğrenme Yetkinliği | Question traditional approaches, practices and methods. | 5 |
| PLO17 | Yetkinlikler - Öğrenme Yetkinliği | Recognize and apply social, scientific and professional ethical values. |
Week Plan
| Week | Topic | Preparation | Methods |
|---|---|---|---|
| 1 | Behavioral domain of economics | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap |
| 2 | Deviations from standard economic theory: Rationality and beyond-1 | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap |
| 3 | Behavioral motifsare otherness, justice, reciprocityand shame | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap |
| 4 | Deviations from standard economic theory: Rationality and beyond | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap |
| 5 | Inconsistent preferences | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap |
| 6 | Reference dependencyand tendencyto avoid losses | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap |
| 7 | Limited rationality | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım |
| 8 | Mid-Term Exam | Reading the Related Book Chapters | Ölçme Yöntemleri: Yazılı Sınav |
| 9 | Social identitiesand their reflection on economic behavior | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap |
| 10 | Decisionmaking under uncertainty | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap |
| 11 | Behavioral game theory | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap |
| 12 | Social preferences and collective participation: Public goods experiments | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap |
| 13 | Experimental method in economics: experimental design | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap |
| 14 | Experimental method in economics: Analysis of experimental data | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap |
| 15 | An application to the classroom experiment-An application to the classroom experiment | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap |
| 16 | Term Exams | Reading Related Book Chapters | Öğretim Yöntemleri: Soru-Cevap |
| 17 | Term Exams-2 | Reading Related Book Chapters | Ölçme Yöntemleri: Yazılı Sınav |
Assessment (Exam) Methods and Criteria
Current term shares have not yet been determined. Shares of the previous term are shown.
| Assessment Type | Midterm / Year Impact | End of Term / End of Year Impact |
|---|---|---|
| 1. Midterm Exam | 100 | 40 |
| General Assessment | ||
| Midterm / Year Total | 100 | 40 |
| 1. Final Exam | - | 60 |
| Grand Total | - | 100 |
Student Workload - ECTS
| Works | Number | Time (Hour) | Workload (Hour) |
|---|---|---|---|
| Course Related Works | |||
| Class Time (Exam weeks are excluded) | 14 | 2 | 28 |
| Out of Class Study (Preliminary Work, Practice) | 14 | 4 | 56 |
| Assesment Related Works | |||
| Homeworks, Projects, Others | 0 | 0 | 0 |
| Mid-term Exams (Written, Oral, etc.) | 1 | 10 | 10 |
| Final Exam | 1 | 20 | 20 |
| Total Workload (Hour) | 114 | ||
| Total Workload / 25 (h) | 4,56 | ||
| ECTS | 5 ECTS | ||