Course Details

BEHAVIORAL ECONOMICS

ECON345

Course Information

Semester	Course Unit Code	Course Unit Title	T+P+L	Credit	Number of ECTS Credits
5	ECON345	BEHAVIORAL ECONOMICS	3+0+0	3	4

Course Details

Language of Instruction	English
Level of Course Unit	Bachelor's Degree
Department / Program	ECONOMICS
Type of Program	Formal Education
Type of Course Unit	Elective
Course Delivery Method	Face To Face
Objectives of the Course	Introducing neoclassical economic theory with its fundamental assumptions. Introducing behavioral economics as a subfield of economics. Providing knowledge on the methodological issues in the field of economics. Discussing the contributions of prospect theory and behavioral economics in the broader field of economics.
Course Content	Course is focused on the current methodological issues about the classical assumptions on economic agents built in neoclassical/mainstream economics. Subjects start with the main assumptions on decision-making such as rationality (rational choice) and common knowledge. Subjects of behavioral decision theory, social preferences, time preferences, behavioral game theory, bounded rationality are also introduced and related subtopics are examined. In addition, current developments in psychological and experimental studies are also discussed.
Course Methods and Techniques	Through approaches such as experimental learning, case studies, simulations, and group projects, students will experience theoretical concepts in a practical manner. Additionally, interactive methods like role-playing, quizzes, article reviews, and digital tools will encourage students to explore cognitive biases in decision-making processes. These techniques will make the course more engaging and interactive.
Prerequisites and co-requisities	None
Course Coordinator	Associate Prof.Dr. ALİ YAVUZ POLAT aliyavuz.polat@agu.edu.tr
Name of Lecturers	None
Assistants	None
Work Placement(s)	No

Recommended or Required Reading

Resources
	This course explores the fundamental principles of behavioral economics and how it differs from classical economic theory. It examines systematic deviations in human behavior, irrational decisions, and the impact of psychological factors on economic outcomes. The focus will be on individuals' decision-making processes, perceptions of risk, and time preferences, discussing the cognitive biases and heuristics that arise in these processes. The course will be supported by experimental studies and real-world examples and reinforced through quizzes.

Course Category

Social Sciences

%100

Planned Learning Activities and Teaching Methods

Activities are given in detail in the section of "Assessment Methods and Criteria" and "Workload Calculation"

Assessment Methods and Criteria

In-Term Studies	Quantity	Percentage
Yarıyıl İçi Çalışmalarının Başarı Notunun Katkısı	1	% 40
Yarıl yılSonu Sınavı/Dönem Projesinin Başarı Notuna Katkısı	1	% 60
Total	2	% 100

ECTS Allocated Based on Student Workload

Activities	Quantity	Duration	Total Work Load
Araştırma Ödevi	1	10	10
Ara Teslim ve Jüri	1	10	10
Yazılı Sınav	1	20	20
Deney	1	3	3
Grup Sunumu	1	5	5
Grup Projesi	1	8	8
Sınıf İçi Aktivitesi	2	2	4
Final Teslimi ve Jüri	1	3	3
Jüri	1	5	5
Değerlendirme Teslimi	1	3	3
Medya İncelemesi	1	5	5
Ders Dışı Sınav	1	3	3
Sunum için Hazırlık	1	5	5
Teslim İçin Hazırlık	1	4	4
Sunum	1	4	4
Soru Çözümü	1	2	2
Kısa Sınav	2	2	4
Rapor	1	8	8
Araştırma	1	5	5
Öğretici Sunum/Açıklama	1	2	2
Der Dışı Final Sınavı	1	3	3
Ders Dışı Ara Sınav	1	2	2
Final Sınavı	1	2	2
Total Work Load			Number of ECTS Credits 4 120

Course Learning Outcomes: Upon the successful completion of this course, students will be able to:

No	Learning Outcomes
1	Demonstrate knowledge about economic theory.
2	Interpret the importance of the assumptions used in economic theory.
3	Understand how behavioral economic theory modified/updated the decision-making models in economics.

Weekly Detailed Course Contents

Week	Topics	Study Materials
1	What is behavioral economics? Differences from classical economics.	Introduction of "Thinking, Fast and Slow" by Daniel Kahneman.
2	Rational decision-making and the concept of bounded rationality in economics.	Herbert Simon's work on bounded rationality.
3	Prospect Theory: Loss aversion and the reference point effect.	Kahneman and Tversky's "Prospect Theory" article.
4	Cognitive biases and heuristic thinking in decision-making processes.	Chapter 2 of "Nudge" by Thaler & Sunstein.
5	The role of time preferences in decision-making and hyperbolic discounting behavior.	An article on "Intertemporal Choice."
6	Human social preferences and altruistic behavior.	Review the "Ultimatum Game" and "Dictator Game" experiments.
7	Midterm Exam
8	The impact of the framing effect on decision-making.	An article on "Heuristics and Biases."
9	Risk perception and the economic outcomes of irrational behavior.	A case study on "Risk and Irrational Behavior."
10	Game theory and behavioral approaches in strategic decision-making processes.	An article on "Nash Equilibrium" and behavioral game theory.
11	Behavioral finance and its impact on individuals' financial decisions.	A literature review on "Behavioral Finance."
12	The impact of biases and cognitive errors on economic decision-making processes.	An article on "Cognitive Biases."
13	The impact of behavioral economics on public policy.	Review a policy report on "Nudge Theory."
14	Future applications and potential research areas of behavioral economics.	An article on "The Future of Behavioral Economics."

Contribution of Learning Outcomes to Programme Outcomes

	P1	P2	P3	P4	P5	P6	P7	P8	P9	P10
C1	1	5	5	4	1	3	5	3	1	1
C2	1	3	5	3	1	5	5	3	1	1
C3	2	4	5	3	4	2	5	2	3	2

Contribution: 1: Very Slight 2:Slight 3:Moderate 4:Significant 5:Very Significant

https://sis.agu.edu.tr/oibs/bologna/progCourseDetails.aspx?curCourse=72357&lang=en

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