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LABORATORY: ENGLISH AND EXPERIMENTAL ECONOMICS II Single discipline educational activity
Course Sheet Academic Year of enrolment:
Professor and Collaborators:
Hours of classroom activity:
Objectives
Contents The topics dealt with during the lectures and the issues discussed during the experimental applications are divided into the following modules:
Module 1: Which rationality? Rationality as maximization.
Module 2: violations of rational choice theory.
Module 3: a descriptive theory of decision.
Module 4: methods of experimental economics.
Extended Syllabus SYLLABUS
(1) Issues concerning rationality: standard theory or reality? Bounded rationality and strategic rationality: Herbert A. Simon.
(2) Rationality as abstract maximization: the axioms. The axiomatisation of utility theory and the analysis of risky decisions.
(3) Expected utility theories: Bernoulli, Ramsey, de Finetti, Savage.
(4) Paradoxes of expected utility: Allais and Ellsberg. Violations of the rational choice theory: violations of transitivity and invariance violations. Framing effect, endowment effect, and default effect.
(5) From paradoxes to unexpected utility theories.
(6) The rise of the experimental and behavioural economics: methodological characteristics and founding fathers.
(7) Critical deconstruction of the standard theory regarding the preferences of economic agents.
(8) A descriptive theory of decisions: the Prospect Theory.
(9) The experimental methodology in the science of economics: methods and purposes.
Recommended Bibliography Charles A. Holt
Markets, games, and strategic Behavior. An introduction to Experimental Economics.
Princeton University Press
Methods of Provision
Teaching Methods Frontal and participatory lessons; scientific seminars; debriefing methods; continuous tutoring activity, that is, to follow the students individually or in group after their class, especially in the preparation of brief term papers and/or team works.
Evaluation methods Verification of learning:
ASSESSMENT METHODS
(1) Learning assessment: mid-term exams.
(2) Summative assessment: final test including closed and/or open-ended questions.
(3) Final assessment:
eligibility
Contacts/More Information