BEHAVIOURAL ECONOMICS

This course is part of the core curriculum of the Master’s degree programme and provides students with an advanced, interdisciplinary understanding of individual and collective decision-making processes. Drawing on insights from economics, psychology, neuroscience, and cognitive science, it focuses on the theoretical foundations and empirical applications of behavioral and experimental economics.

The course introduces key concepts such as bounded rationality, intertemporal choice, social preferences, strategic interaction, and the role of cognitive and emotional processes in economic behavior. Special emphasis is placed on the comparison between behavioral models and standard neoclassical approaches, highlighting how experimental evidence challenges traditional assumptions and informs alternative modeling strategies.

A strong methodological component trains students in experimental design, hypothesis formulation, data collection and analysis, and the critical interpretation of results. The competencies acquired are highly relevant for careers in public policy, regulatory analysis, marketing, and organizational decision-making — offering a broad non-financial application focus that complements finance-oriented courses in the programme.

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 theoretical and empirical approaches in behavioral and experimental economics, with a strong focus on experimental methods and applications across various domains. It builds on interdisciplinary insights to examine how individuals and groups make decisions under cognitive, emotional, and contextual constraints.
Topics include:
- Bounded rationality and cognitive limitations
- Intertemporal decision-making and time inconsistency
- Social and other-regarding preferences
- Strategic interaction and behavioral game theory
- Emotions and cognitive processes in economic behavior
- Neuroeconomic insights into decision-making mechanisms
- Experimental design, data collection, and analysis
- Laboratory and field experiments applied to public policy, organizations, and consumer behavior
The course includes the analysis of scientific literature and the development of an experimental project (individual or group-based).

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.
The final evaluation will include:
- A written exam, assessing both foundational knowledge and the ability to apply key concepts;
- An individual project, focusing on the in-depth analysis of a topic agreed upon with the instructor.

The final grade will be expressed on a 30-point scale, with 18/30 as the minimum passing grade.

Further details and supporting materials will be made available 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;
- Individual or 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