BEHAVIOURAL ECONOMICS

The course is part of the core curriculum of the Master’s degree programme and provides students with advanced understanding of individual and collective decision-making processes through theoretical models and experimental evidence.

It introduces the main subfields of behavioral economics, including:
- the analysis of individual preferences and behavior under risk and uncertainty,
- social and other-regarding preferences,
- strategic behavior and the application of game theory to understand interactions among economic agents.
Particular emphasis is placed on the critical comparison between behavioral theories and the neoclassical models studied in prior microeconomics courses, highlighting the main differences in assumptions, modeling choices, and implications for predicted behavior. Major empirical and experimental violations of expected utility theory will be described and discussed in detail, along with the most promising modeling solutions proposed by behavioral research.

The course integrates interdisciplinary approaches from economics, psychology, neuroscience, and cognitive science, with a strong methodological and applied focus. Students will learn how to design economic experiments, formulate and test research hypotheses, collect and analyze data, interpret findings, and critically evaluate existing studies.

Teaching relies on an internationally recognized advanced textbook (The Foundations of Behavioral Economic Analysis) and a curated selection of seminal academic articles illustrating the most relevant theoretical contributions and empirical applications.

The competencies developed are essential for pursuing professional and research careers in areas such as strategic consulting, marketing, public policy analysis, organizational behavior, business model innovation, and the development of experimental evidence to inform managerial and regulatory decisions.

By the end of the course, students will be able to:

- Knowledge and Understanding
-- Understand the main theoretical models of behavioral and experimental economics and the differences from neoclassical approaches, with reference to individual decision-making, strategic interactions, and social preferences.
-- Recognize how modeling choices are informed by assumptions and by findings from psychology, neuroscience, and the social sciences.
-- Understand the role of emotions in decision-making.

- Applying Knowledge and Understanding
-- Design and conduct economic experiments, formulate and test research hypotheses, collect, process, and interpret data, and apply behavioral models to analyze individual and collective behavior.

- Making Judgements
-- Critically assess the assumptions and implications of different theoretical and methodological approaches, and discuss major empirical violations of neoclassical models and the available experimental evidence.

- Communication Skills
-- Present concepts, models, and empirical results clearly and rigorously, illustrating their practical and managerial implications using appropriate technical language.

- Learning Skills
-- Develop a critical and interdisciplinary approach to studying economic behavior and strengthen the ability to autonomously analyze scientific literature and experimental research.

A basic understanding of core microeconomics and expected utility theory is required, including familiarity with concepts such as risk aversion, expected utility maximization, and the evaluation of lotteries.

Introductory knowledge of game theory (dominant strategies and Nash equilibrium) is recommended but not mandatory.

Basic familiarity with statistics and quantitative methods is also recommended, in particular understanding of data analysis, hypothesis testing, linear regression, and interpretation of empirical results, which are useful for engaging with the experimental components of the course.

It is further recommended to have good reading comprehension of English for engaging with scientific articles and supplementary materials.

The course introduces the main models and tools of behavioral and experimental economics, with a particular focus on theoretical foundations and empirical applications.
Topics include:
- Limits of rationality and models of bounded rationality;
- Preferences under risk and uncertainty;
- Intertemporal decision-making and time inconsistency;
- Social preferences and altruistic behavior;
- The economics of emotions and cognitive processes;
- Contributions of neuroeconomics to understanding decision-making mechanisms;
- Behavioral game theory and models of strategic learning;
- Experimental methods for analyzing economic behavior;
- Design and implementation of laboratory and field experiments;
- Applications to managerial contexts, economic policy, and regulation.
The course includes case study discussions, analysis of scientific articles, and the development of an experimental group project.

The main reference textbook for this course is:
- Sanjit Dhami (2016). The Foundations of Behavioral Economic Analysis. Oxford University Press.

In addition to the core textbook, the course requires the reading of seminal academic articles and supplementary materials covering key topics in behavioral and experimental economics.

A detailed list of the specific textbook sections to be studied for the final exam, together with all required and recommended readings (scientific articles, case studies, supporting materials), will be made available on the Moodle platform.

Additional teaching materials will also be accessible in electronic format via Moodle.

Student assessment is based on a combination of tools designed to evaluate theoretical understanding, the ability to apply concepts critically and independently, and proficiency in scientific communication.

Attending students (attendance of at least 80% of lectures):
- Reduced written exam (20%): assessment of foundational theoretical knowledge.
- Group project (40%): design, implementation, and presentation of an experimental study involving collection and analysis of behavioral data.
- Individual project (30%): in-depth analysis of a topic agreed upon with the instructor.
- Academic paper presentation (10%): critical presentation of a key contribution from the literature.
Active and constructive participation in class discussions may be rewarded with a bonus of up to 3 points on the final grade.

Non-attending students (attendance below 80% of lectures):
- Complete written exam (100%): comprehensive assessment of theoretical knowledge and application skills.
Alternatively, upon request, students may complete an individual project, in which case the grade will be composed as follows:
- Written exam (50%);
- Individual project (50%).
All supporting materials and operational guidelines will be provided on the Moodle platform.

written and oral

Student performance will be assessed based on the level of understanding of course content, the ability to apply concepts critically and independently, and clarity in the use of behavioral economics terminology.

Scores range from 18/30 (sufficient) to 30 with distinction (excellent).

A detailed description of grading criteria is available on Moodle.

The course combines traditional lectures with interactive and applied learning.
Face-to-face sessions will introduce theoretical concepts, which will be further developed through:
- Seminar discussions of seminal papers, requiring students to read and critically engage with key publications before class;
- Group research projects, where students design, implement, and present an experimental study, including data collection and analysis;
- Collaborative teamwork, encouraging students to analyze behavioral phenomena and discuss solutions in class;
- Case study discussions, to apply behavioral economics frameworks to empirical examples.
All course materials, readings, and instructions will be made available on the Moodle platform.
The instructor will guide project development and discussions but will foster active student participation as the core of the learning process.

Accessibility, Disability and Inclusion
Accommodation and support services for students with disabilities and students with specific learning impairments

Ca’ Foscari abides by Italian Law (Law 17/1999; Law 170/2010) regarding support services and accommodation available to students with disabilities. This includes students with
mobility, visual, hearing and other disabilities (Law 17/1999), and specific learning impairments (Law 170/2010). If you have a disability or impairment that requires accommodations (i.e., alternate testing, readers, note takers or interpreters) please contact the Disability and Accessibility Offices in Student Services: disabilita@unive.it.

This subject deals with topics related to the macro-area "Poverty and inequalities" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development