SAM17 Economics and Psychology

• Topics

  The course will introduce students to the exciting world of Economics and Psychology - also know as Behavioral Economics. Traditional economic models assume that people are perfectly rational and seek to maximize their own payoffs. This course studies the economic consequences of acknowledging that people have bounded rationality and often are motivated by moral and social considerations. Issues linked to sustainability, such as how to secure a fair and efficient allocation of resources beneficial for both today's and future generations, will be covered in the course.

  The course will also introduce students to the scientific method of experiments. We will discuss different types of experiments, and the pros and cons of experimentation. Students will also get the chance to design and implement their own economic experiment. This will be done in teams of two students, and a presentation of the experiment and discussion of results will form part of the oral examination.

  Some of the topics the course will cover are:

  • Reference dependence and loss aversion
  • Choice over time and present bias
  • How emotions affect choice
  • Attitudes to competition
  • Attitudes to risk
  • Fairness views
  • Honesty
  • Trust and cooperation
  • Reciprocity
  • Supernatural beliefs

• Learning outcome

  General knowledge

  • Explain and compare different decision theories.
  • Critically reflect on the limitations of the standard economic model.
  • Discuss the role of experimental methods in economic research.

  Skills

  • Demonstrate how extended motivation and bounded rationality can shed light on important societal questions such as sustainability and inequality.
  • Design and conduct a behavioral experiment following standard practice in behavioral economics.
  • Interpret experimental evidence and draw well-founded conclusions relevant for business and policy.

  General competence

  • Plan and complete a group-based research project over an extended period of time, in accordance with ethical guidelines 
  • Communicate academic content in a research format, both orally and in writing.
  • Read and critically evaluate research articles from peer-reviewed journals.

• Teaching

  The course will use a combination of lectures and in-class discussions. Active participation is expected and highly encouraged.

  The lectures will be given by the two lecturers responsible for the course.

  Group work will be guided by student assistants.

• Compulsory Activity

  The work requirement in the course is composed of two parts:

  • Present an experimental design in class 
  • Participate in a lab experiment

  The work requirement is only valid in the semester in which it was obtained.

• Assessment

  Oral exam (100%): 15 minutes per group.

  The oral exam consists of a short group presentation (2-3 students per group) of a self-designed experiment, followed by individual questions and discussion related to the whole curriculum. Group presentation and individual performance are weighted equally.

• Grading Scale

  A-F.

• Computer tools

  None.  

• Literature

  - Around 10 scientific articles.

  - Lecture notes.

• Permitted Support Material

  None

• Retake

  Retake in SAM17 will not be offered during the non-teaching semester (spring). Only mandatory bachelor courses with an individual written school exam or a home exam lasting up to one day will have a retake assessment in the non-teaching semester.

  For detailed information regarding the retake policy, please visit our website: https://www.nhh.no/en/for-students/examinations/retake-of-exams (copy URL).