All programmes > Incentives and Behavior

Incentives and Behavior (B-KUL-D0S10A)

6 ECTSEnglish26 First term
Schuett Florian
OC Handelsingenieur en Handelsingenieur in de beleidsinformatica FEB Campus Leuven

Aims

Upon completion of this course, the student is able to:

(a) describe fundamental behavioral concepts and their applications,
(b) apply game theory and behavioral theories to problems in business and public policy
(c) discuss how different behavioral concepts are related to each other
(d) explain the most important research methods in behavioral economics

Explanation

The course offers a thorough introduction to behavioral contract theory and its applications. We study how firms and consumers deal with asymmetric information, how market outcomes change when consumers make predictable decision errors (such as time-inconsistent choices), how optimal contracts look like when workers care about the mission of an organization, and the scope for public policy when agents have non-standard preferences. For each application, we will examine both the relevant theory and recent empirical research on the subject.

Previous knowledge

At the beginning of the course, the students should have followed at least one intermediate (BA level) class in each of economics, mathematics and statistics.

Is included in these courses of study

Activities

6 ects. Incentives and Behavior (B-KUL-D0S10a)

6 ECTSEnglishFormat: Lecture26 First term
Schuett Florian
OC Handelsingenieur en Handelsingenieur in de beleidsinformatica FEB Campus Leuven

Content

[1] Markets with Asymmetric Information – The Case of Health Insurance
[2] Markets with Asymmetric Information – Reputation and Recommendation Systems
[3] Boundedly Rational Consumers – Risk and Time Preferences
[4] Boundedly Rational Consumers – Financial Decision Making
[5] Motivated Workers – Social Preferences and Mission Motivation
[6] Motivated Workers – Screening and Signaling of Motivation
[7] Public Policy with Boundedly Rational Agents  – Libertarian Paternalism
[8] Public Policy with Boundedly Rational Agents  – Justice and Inequality

Course material

Lecture Slides, Problem Sets, Research Papers
Toledo is being used for this learning activity

Language of instruction: more information

Advanced class that will draw extensively on existing research, which is predominantly in English.

Format: more information

Weekly lectures combined with problem sets.

Evaluation

Evaluation: Incentives and Behavior (B-KUL-D2S10a)

Type : Exam during the examination period
Description of evaluation : Written
Type of questions : Open questions, Closed questions
Learning material : None

Explanation


Properties of the evaluation

  • Closed book written exam during the regular examination period, open and closed questions. For multiple choice questions, a guessing correction is applied. Details will be communicated during the lectures and on the Toledo page of the course.

Determination of final grade

  •  The grades are determined by the lecturer as communicated via Toledo and stated in the examination schedule. The result is calculated and communicated as a whole number on a scale of 20..

Second examination

  • The features of the evaluation and determination of grades are identical to those of the first examination opportunity, as described above.