The aim of this course is to reveal psychological and sociological factors that lie behind the decisions made by individuals and to uncover how these factors affect the decision making process of these individuals.
Course Content
This course contains; Transaction Utility and Consumer Pricing,Mental Accounting,Status Quo Bias and Default Options,Winner's Curse and Auction Behavior,Framing Decisions,Availability and Representativeness Heuristics,Confirmation Bias and Overconfidence,Decision Making under Risk and Uncertainty,Prospect Theory,Disagreeing with Ourselves: Projection and Hindsight Biases,Selfishness and Altruism,Fairness and Psychological Games,Trust and Reciprocity - I,Trust and Reciprocity - II.
Course Learning Outcomes
Teaching Methods
Assessment Methods
1. Explains the strategies that indivdiuals use when reaching a decision.
9
A
1.1. Explain availability heuristic.
1.2. Explain representativeness heuristic.
2. Explains psychological and cognitive biases that affect the decisions of individuals.
9
A
2.1. Explain mental accounting.
2.2. Explain loss aversion.
2.3. Explain confirmation bias.
3. Explains the problems on the understanding of the individuals regarding past.
9
A
3.1. Explain how much individuals can remember past correctly.
3.2. Explain what problems individuals encounter regarding remembering past.
4. Explains the problems on the understanding of the individuals regarding future.
9
A
4.1. Explain how much individuals can forecast future correctly.
4.2. Explain what problems individuals encounter regarding predicting future.
5. Explains what kinds of thinking types individuals have.
9
A
5.1. Explain how the first system works in our brains.
5.2. Explain how the second system works in our brains.
Teaching Methods:
9: Lecture Method
Assessment Methods:
A: Traditional Written Exam
Course Outline
Order
Subjects
Preliminary Work
1
Transaction Utility and Consumer Pricing
Reading the relevant section from the book
2
Mental Accounting
Reading the relevant section from the book
3
Status Quo Bias and Default Options
Reading the relevant section from the book
4
Winner's Curse and Auction Behavior
Reading the relevant section from the book
5
Framing Decisions
Reading the relevant section from the book
6
Availability and Representativeness Heuristics
Reading the relevant section from the book
7
Confirmation Bias and Overconfidence
Reading the relevant section from the book
8
Decision Making under Risk and Uncertainty
Reading the relevant section from the book
9
Prospect Theory
Reading the relevant section from the book
10
Disagreeing with Ourselves: Projection and Hindsight Biases
Reading the relevant section from the book
11
Selfishness and Altruism
Reading the relevant section from the book
12
Fairness and Psychological Games
Reading the relevant section from the book
13
Trust and Reciprocity - I
Reading the relevant section from the book
14
Trust and Reciprocity - II
Reading the relevant section from the book
Resources
-David R. Just, Introduction to Behavioral Economics, 2013.
Course Contribution to Program Qualifications
Course Contribution to Program Qualifications
No
Program Qualification
Contribution Level
1
2
3
4
5
1
Defines theoretical knowledge in the field of management.
X
1
Uses at least one computer program required in the field of management.
X
1
Adopts the principles of scientific ethics and scientific responsibility.
X
1
Uses theoretical and practical knowledge in the field of management.
X
2
Analyzes and uses basic information and data from different disciplines (economy, finance, sociology, law, business) in order to carry out interdisciplinary studies.
X
2
Have the research skills required to conduct academic studies.
X
2
Explains the mathematical and statistical methods required in the field of management.
X
3
Have time management skills.
X
3
Expands the boundaries of knowledge in the field by producing or interpreting an original work by conducting at least one scientific study in the field.
X
Assessment Methods
Contribution Level
Absolute Evaluation
Rate of Midterm Exam to Success
50
Rate of Final Exam to Success
50
Total
100
ECTS / Workload Table
Activities
Number of
Duration(Hour)
Total Workload(Hour)
Course Hours
14
3
42
Guided Problem Solving
0
0
0
Resolution of Homework Problems and Submission as a Report
11
10
110
Term Project
0
0
0
Presentation of Project / Seminar
0
0
0
Quiz
0
0
0
Midterm Exam
1
50
50
General Exam
1
70
70
Performance Task, Maintenance Plan
0
0
0
Total Workload(Hour)
272
Dersin AKTS Kredisi = Toplam İş Yükü (Saat)/30*=(272/30)
9
ECTS of the course: 30 hours of work is counted as 1 ECTS credit.
Detail Informations of the Course
Course Description
Course
Code
Semester
T+P (Hour)
Credit
ECTS
BEHAVIORAL ECONOMICS and FINANCE
BUSD1115063
Fall Semester
3+0
3
9
Course Program
Prerequisites Courses
Recommended Elective Courses
Language of Course
English
Course Level
Third Cycle (Doctorate Degree)
Course Type
Elective
Course Coordinator
Prof.Dr. Serhat YÜKSEL
Name of Lecturer(s)
Prof.Dr. Elif BAYKAL
Assistant(s)
Aim
The aim of this course is to reveal psychological and sociological factors that lie behind the decisions made by individuals and to uncover how these factors affect the decision making process of these individuals.
Course Content
This course contains; Transaction Utility and Consumer Pricing,Mental Accounting,Status Quo Bias and Default Options,Winner's Curse and Auction Behavior,Framing Decisions,Availability and Representativeness Heuristics,Confirmation Bias and Overconfidence,Decision Making under Risk and Uncertainty,Prospect Theory,Disagreeing with Ourselves: Projection and Hindsight Biases,Selfishness and Altruism,Fairness and Psychological Games,Trust and Reciprocity - I,Trust and Reciprocity - II.
Course Learning Outcomes
Teaching Methods
Assessment Methods
1. Explains the strategies that indivdiuals use when reaching a decision.
9
A
1.1. Explain availability heuristic.
1.2. Explain representativeness heuristic.
2. Explains psychological and cognitive biases that affect the decisions of individuals.
9
A
2.1. Explain mental accounting.
2.2. Explain loss aversion.
2.3. Explain confirmation bias.
3. Explains the problems on the understanding of the individuals regarding past.
9
A
3.1. Explain how much individuals can remember past correctly.
3.2. Explain what problems individuals encounter regarding remembering past.
4. Explains the problems on the understanding of the individuals regarding future.
9
A
4.1. Explain how much individuals can forecast future correctly.
4.2. Explain what problems individuals encounter regarding predicting future.
5. Explains what kinds of thinking types individuals have.
9
A
5.1. Explain how the first system works in our brains.
5.2. Explain how the second system works in our brains.
Teaching Methods:
9: Lecture Method
Assessment Methods:
A: Traditional Written Exam
Course Outline
Order
Subjects
Preliminary Work
1
Transaction Utility and Consumer Pricing
Reading the relevant section from the book
2
Mental Accounting
Reading the relevant section from the book
3
Status Quo Bias and Default Options
Reading the relevant section from the book
4
Winner's Curse and Auction Behavior
Reading the relevant section from the book
5
Framing Decisions
Reading the relevant section from the book
6
Availability and Representativeness Heuristics
Reading the relevant section from the book
7
Confirmation Bias and Overconfidence
Reading the relevant section from the book
8
Decision Making under Risk and Uncertainty
Reading the relevant section from the book
9
Prospect Theory
Reading the relevant section from the book
10
Disagreeing with Ourselves: Projection and Hindsight Biases
Reading the relevant section from the book
11
Selfishness and Altruism
Reading the relevant section from the book
12
Fairness and Psychological Games
Reading the relevant section from the book
13
Trust and Reciprocity - I
Reading the relevant section from the book
14
Trust and Reciprocity - II
Reading the relevant section from the book
Resources
-David R. Just, Introduction to Behavioral Economics, 2013.
Course Contribution to Program Qualifications
Course Contribution to Program Qualifications
No
Program Qualification
Contribution Level
1
2
3
4
5
1
Defines theoretical knowledge in the field of management.
X
1
Uses at least one computer program required in the field of management.
X
1
Adopts the principles of scientific ethics and scientific responsibility.
X
1
Uses theoretical and practical knowledge in the field of management.
X
2
Analyzes and uses basic information and data from different disciplines (economy, finance, sociology, law, business) in order to carry out interdisciplinary studies.
X
2
Have the research skills required to conduct academic studies.
X
2
Explains the mathematical and statistical methods required in the field of management.
X
3
Have time management skills.
X
3
Expands the boundaries of knowledge in the field by producing or interpreting an original work by conducting at least one scientific study in the field.
