BEHAVIOURAL ECONOMICS

This course is part of the core curriculum of the Master's degree programme and provides an advanced, interdisciplinary understanding of individual and collective decision-making. Drawing on economics, psychology, neuroscience and cognitive science, it examines the theoretical foundations and empirical applications of behavioural and experimental economics.

The course introduces key concepts including bounded rationality, intertemporal choice, social preferences, strategic interaction, and the role of cognitive and emotional processes in economic behaviour. Particular attention is devoted to comparing behavioural models with standard neoclassical approaches and to examining how experimental evidence challenges traditional assumptions and informs the development of alternative models.

The methodological component equips students with tools for experimental design, hypothesis formulation, data collection and analysis, and the critical interpretation of results. These competencies are applicable to public-policy analysis, marketing, regulation and organisational behaviour. The course therefore provides a predominantly non-financial applied perspective that complements the finance-oriented courses in the degree programme.

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

Knowledge and understanding

- understand the main theoretical models of behavioural and experimental economics and distinguish them from neoclassical approaches, with reference to individual decision-making, strategic interactions and social preferences;
- understand the relationship between theoretical assumptions, modelling choices, and evidence from psychology, neuroscience and the social sciences;
- understand the role of emotions and cognitive processes in economic decision-making.

Applying knowledge and understanding

- apply behavioural models to the analysis of individual and collective behaviour;
- design experimental studies, formulate research hypotheses, identify appropriate methods for data collection and analysis, and critically interpret empirical results.

Making judgements

- critically assess the assumptions and implications of different theoretical and methodological approaches;
- discuss the main empirical violations of neoclassical models using reasoned arguments and evaluate the robustness of the available experimental evidence.

Communication skills

- present concepts, models, methods and empirical results clearly, rigorously and coherently, using appropriate technical terminology;
- explain the practical and managerial implications of their analyses and support their conclusions with well-founded arguments.

Learning skills

- develop a critical and interdisciplinary approach to the study of economic behaviour;
- analyse scientific literature independently and engage with new theoretical and empirical contributions.

A basic knowledge of the main concepts of microeconomics and expected utility theory is required, particularly risk aversion, expected utility maximisation and the evaluation of lotteries.

Familiarity with the foundations of game theory, particularly dominant strategies and Nash equilibrium, is recommended but not mandatory.

Introductory knowledge of statistics and quantitative methods is also recommended, including data analysis, hypothesis testing, linear regression and the interpretation of empirical results. These skills will support engagement with the experimental component of the course.

As the course and its assessment activities are conducted in English, students are expected to have sufficient proficiency to follow lectures, read scientific articles, complete the written examination and deliver oral presentations.

The course presents the main theoretical and empirical approaches in behavioural and experimental economics, with particular attention to experimental methods and their applications. Adopting an interdisciplinary perspective, it examines how individuals and groups make decisions in the presence of cognitive limitations, emotional factors and contextual constraints.

The main topics are:

- bounded rationality and cognitive limitations;
- intertemporal choice and time inconsistency;
- social and other-regarding preferences;
- strategic interaction and behavioural game theory;
- emotions and cognitive processes in economic decision-making;
- contributions from neuroeconomics to the understanding of decision-making processes;
- experimental design, hypothesis formulation, data collection and analysis;
- laboratory and field experiments applied to public policy, organisations and consumer behaviour.

The course includes the critical analysis of scientific literature and experimental-design activities conducted individually and/or in groups, according to the assessment method selected.

The main reference text is:

- Dhami, S. (2016), "The Foundations of Behavioral Economic Analysis", Oxford University Press.

The course also requires the reading of seminal academic articles and supplementary materials relating to the principal topics in behavioural and experimental economics.

A detailed list of the textbook sections included in the examination syllabus, together with the required and recommended readings, will be published on Moodle. Any additional teaching materials will be made available electronically on the same platform.

Unless otherwise indicated, the examination syllabus and required readings are the same for all students, irrespective of the assessment method selected.

Assessment is designed to evaluate students' knowledge and understanding of the main concepts and models of behavioural and experimental economics, their ability to apply them critically and independently, their competence in designing and analysing experimental studies, and their scientific communication skills.

For assessment purposes, students are considered attending if they participate in the project activities conducted during the course and complete both the individual and group projects by the established deadlines.

For attending students, the final assessment comprises:

- a written examination (40%), assessing knowledge and understanding of the main concepts and models covered in the course and the ability to apply them to specific problems;
- an individual project with an oral presentation (30%), assessing the ability to investigate a behavioural-economics topic independently, apply relevant theoretical or empirical tools, and present the analysis clearly and rigorously;
- a group project with an oral presentation (30%), assessing the ability to design and develop an experimental study collaboratively, formulate hypotheses, analyse and interpret data, and communicate the methodology and findings clearly.

Students who do not participate in the project activities required for attending students may choose between the following assessment methods:

- a comprehensive written examination accounting for 100% of the final grade and assessing knowledge of the course content, application of behavioural models, the ability to formulate hypotheses and design experimental studies, and the critical interpretation of empirical evidence and data; or
- a written examination (70%) and an individual project with an oral presentation (30%), agreed upon in advance with the instructor.

Students must communicate their choice of assessment method in accordance with the procedures and deadlines published on Moodle.

Each assessment component is graded on a 30-point scale. To pass the course, students must complete all components required under their chosen assessment method, obtain at least 18/30 in the written examination, and achieve a final grade of at least 18/30. When the assessment comprises more than one component, the final grade is calculated as the weighted average of the respective grades using the percentages indicated above.

Grades for the group project may differ among group members according to each student's individual contribution and the quality of their oral presentation.

Supporting materials and operational instructions, including the format of the examinations and projects, submission procedures and deadlines, will be published on Moodle.

written and oral

The instructor is responsible for ensuring the authenticity and originality of all examinations and coursework. In cases of suspected academic misconduct, an additional on-site assessment may be required during the exams, which may differ from the standard format.

The final grade is expressed on a 30-point scale; 18/30 is the minimum passing grade.

For attending students, the final grade is calculated as follows: written examination 40%, individual project with oral presentation 30%, and group project with oral presentation 30%.

For students who do not participate in the project activities required for attending students, the final grade is determined, depending on the chosen assessment method, either entirely by the written examination or by the written examination (70%) and the individual project with oral presentation (30%).

Under all assessment methods, students must obtain at least 18/30 in the written examination. When the assessment comprises more than one component, students must also achieve a final weighted average of at least 18/30.

Regardless of the assessment method selected, grades are assigned according to the following criteria:

- 18-22: sufficient knowledge and understanding of the main concepts and models of behavioural and experimental economics; basic ability to apply them to familiar problems; limited autonomy in interpreting theoretical or empirical evidence and data; sufficiently clear communication, although technical terminology may not always be used precisely;
- 23-26: good knowledge and understanding of the course topics; generally correct application of behavioural models and experimental methods; reasonable autonomy in analysing and interpreting evidence and data; clear communication and generally appropriate use of technical terminology;
- 27-30: very good or excellent knowledge and understanding of the course topics; rigorous and independent application of concepts and methods; strong ability to compare theoretical approaches critically and interpret empirical evidence and data; clear, precise and well-structured communication using appropriate technical terminology;
- 30 with honours: outstanding mastery of the course topics and methods, combined with excellent critical judgement, analytical independence, originality and communication skills.

For assessment methods that include a project, the evaluation also considers the project's coherence, the appropriateness of its methodology, the quality of the analysis and interpretation of the results, and the effectiveness of the oral presentation.

The course combines lectures with interactive and applied learning activities. Lectures introduce the main theoretical concepts and models, which are subsequently explored through:

- seminar discussions of seminal academic articles, requiring students to read and critically analyse the texts before class;
- individual and group project activities, according to the assessment method selected, in which students formulate hypotheses, design and present an experimental study, and analyse and interpret data;
- collaborative activities focusing on the analysis of behavioural phenomena and the discussion of possible explanations or solutions;
- case-study discussions designed to apply behavioural-economics models to empirical situations.

The instructor guides project development and class discussions while promoting active student participation. Teaching materials, readings and instructions for the activities will be available on Moodle. Students who do not attend classes will be able to use the materials and guidance provided on the platform to prepare for their chosen assessment method.

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