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,Bracketing 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.
Dersin Öğrenme Kazanımları
Teaching Methods
Assessment Methods
1. Will be able to explain the strategies that indivdiuals use when reaching a decision.
10, 16, 9
A
1.1. Explain availability heuristic.
10, 16, 9
A
1.2. Explain representativeness heuristic.
10, 16, 9
A
2. Will be able to explain psychological and cognitive biases that affect the decisions of individuals.
10, 16, 9
A
2.1. Explain mental accounting.
10, 16, 9
A
2.2. Explain loss aversion.
10, 16, 9
A
2.3. Explain confirmation bias.
10, 16, 9
A
3. Will be able to explain the problems on the understanding of the individuals regarding past.
10, 16, 9
A
3.1. Explain how much individuals can remember past correctly.
10, 16, 9
A
3.2. Explain how much individuals encounter problems regarding remembering past.
10, 16, 9
A
4. Will be able to explain the problems on the understanding of the individuals regarding future.
10, 16, 9
A
4.1. Explain how much individuals can forecast future correctly.
10, 16, 9
A
4.2. Explain how much individuals encounter problems regarding predicting future.
10, 16, 9
A
5. Explain what kinds of thinking types individuals have.
10, 16, 9
A
5.1. Explain how the first system works in our brains.
10, 16, 9
A
5.2. Explain how the second system works in our brains.
Disagreeing with Ourselves: Projection and Hindsight Biases
Reading Relevant Lecture Notes
11
Selfishness and Altruism
Reading Relevant Lecture Notes
12
Fairness and Psychological Games
Reading Relevant Lecture Notes
13
Trust and Reciprocity
Reading Relevant Lecture Notes
Resources
David R. Just, 2014, Introduction to Behavioral Economics, Wiley
[1] Thaler, Richard, and Cass Sunstein. 2021. Nudge: The Final Edition.
[2] Thaler, 2015, Misbehaving: The Making of Behavioral Economics
[3] Bernheim, B. Douglas, Stefano DellaVigna, and David Laibson. 2018. “Handbook of BehavioralEconomics.” Elsevier
[4] Kahneman, D. 2011. Thinking Fast and Slow. Farrar, Straus and Giroux
Course Contribution to Program Qualifications
Course Contribution to Program Qualifications
No
Program Qualification
Contribution Level
1
2
3
4
5
1
(S)he describes theoretical knowledge in economics and finance.
X
2
(S)he explains mathematical and statistical methods needed for economics and finance.
3
(S)he uses at least one computer program utilized for economic and financial analyses (SPSS, Eviews, STATA, R ve MATLAB).
4
(S)he has the foreign language proficiency necessary for economics and finance.
5
(S)he develops projects in the field and handles team work.
X
6
(S)he develops (her) his awareness of lifetime learning, follows the developments in (her) his field and adopts a critical approach.
X
7
(S)he uses theoretical and practical knowledge on economics and finance.
X
8
(S)he delivers (her) his opinions by making effective use of modern technologies and of at least one foreign language at a minimum level of level C1.
9
(S)he adopts and uses organizational, corporate and social ethical values.
X
10
(S)he adopts principles of social responsibility and acts whenever needed in light of social service sensitivity.
X
11
(S)he analyzes and uses basic knowledge and data regarding different disciplines to conduct inter-disciplinary studies.
X
12
(S)he benefits from (her) his proficiency in economics and finance to make policy suggestions and contribute to the field.
X
Assessment Methods
Contribution Level
Absolute Evaluation
Rate of Midterm Exam to Success
40
Rate of Final Exam to Success
60
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
1
20
20
Term Project
9
5
45
Presentation of Project / Seminar
0
0
0
Quiz
0
0
0
Midterm Exam
1
20
20
General Exam
1
25
25
Performance Task, Maintenance Plan
0
0
0
Total Workload(Hour)
152
Dersin AKTS Kredisi = Toplam İş Yükü (Saat)/30*=(152/30)
5
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
ECO2252860
Spring Semester
3+0
3
5
Course Program
Salı 13:30-14:15
Salı 14:30-15:15
Salı 15:30-16:15
Cumartesi 13:30-14:15
Cumartesi 14:30-15:15
Cumartesi 15:30-16:15
Prerequisites Courses
Recommended Elective Courses
Language of Course
English
Course Level
First Cycle (Bachelor's Degree)
Course Type
Required
Course Coordinator
Assist.Prof. Ayşe Saime DÖNER
Name of Lecturer(s)
Assist.Prof. Hakan YILDIZ
Assistant(s)
Aim
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,Bracketing 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.
Dersin Öğrenme Kazanımları
Teaching Methods
Assessment Methods
1. Will be able to explain the strategies that indivdiuals use when reaching a decision.
10, 16, 9
A
1.1. Explain availability heuristic.
10, 16, 9
A
1.2. Explain representativeness heuristic.
10, 16, 9
A
2. Will be able to explain psychological and cognitive biases that affect the decisions of individuals.
10, 16, 9
A
2.1. Explain mental accounting.
10, 16, 9
A
2.2. Explain loss aversion.
10, 16, 9
A
2.3. Explain confirmation bias.
10, 16, 9
A
3. Will be able to explain the problems on the understanding of the individuals regarding past.
10, 16, 9
A
3.1. Explain how much individuals can remember past correctly.
10, 16, 9
A
3.2. Explain how much individuals encounter problems regarding remembering past.
10, 16, 9
A
4. Will be able to explain the problems on the understanding of the individuals regarding future.
10, 16, 9
A
4.1. Explain how much individuals can forecast future correctly.
10, 16, 9
A
4.2. Explain how much individuals encounter problems regarding predicting future.
10, 16, 9
A
5. Explain what kinds of thinking types individuals have.
10, 16, 9
A
5.1. Explain how the first system works in our brains.
10, 16, 9
A
5.2. Explain how the second system works in our brains.
Disagreeing with Ourselves: Projection and Hindsight Biases
Reading Relevant Lecture Notes
11
Selfishness and Altruism
Reading Relevant Lecture Notes
12
Fairness and Psychological Games
Reading Relevant Lecture Notes
13
Trust and Reciprocity
Reading Relevant Lecture Notes
Resources
David R. Just, 2014, Introduction to Behavioral Economics, Wiley
[1] Thaler, Richard, and Cass Sunstein. 2021. Nudge: The Final Edition.
[2] Thaler, 2015, Misbehaving: The Making of Behavioral Economics
[3] Bernheim, B. Douglas, Stefano DellaVigna, and David Laibson. 2018. “Handbook of BehavioralEconomics.” Elsevier
[4] Kahneman, D. 2011. Thinking Fast and Slow. Farrar, Straus and Giroux
Course Contribution to Program Qualifications
Course Contribution to Program Qualifications
No
Program Qualification
Contribution Level
1
2
3
4
5
1
(S)he describes theoretical knowledge in economics and finance.
X
2
(S)he explains mathematical and statistical methods needed for economics and finance.
3
(S)he uses at least one computer program utilized for economic and financial analyses (SPSS, Eviews, STATA, R ve MATLAB).
4
(S)he has the foreign language proficiency necessary for economics and finance.
5
(S)he develops projects in the field and handles team work.
X
6
(S)he develops (her) his awareness of lifetime learning, follows the developments in (her) his field and adopts a critical approach.
X
7
(S)he uses theoretical and practical knowledge on economics and finance.
X
8
(S)he delivers (her) his opinions by making effective use of modern technologies and of at least one foreign language at a minimum level of level C1.
9
(S)he adopts and uses organizational, corporate and social ethical values.
X
10
(S)he adopts principles of social responsibility and acts whenever needed in light of social service sensitivity.
X
11
(S)he analyzes and uses basic knowledge and data regarding different disciplines to conduct inter-disciplinary studies.
X
12
(S)he benefits from (her) his proficiency in economics and finance to make policy suggestions and contribute to the field.
