Рабочая программа дисциплины 
 «Поведенческая Экономика                  
 (Behavioral Economics)»

для направления 38.06.01 «Экономика», 
профили «Экономическая теория», «Экономика и управление народным хозяйством                        (по отраслям и сферам деятельности в т.ч. экономика, организация и управление предприятиями, отраслями, комплексами – промышленность, сфера услуг; экономика труда)», «Бухгалтерский учет, статистика», «Математические и инструментальные методы экономики» 
подготовки научно-педагогических кадров в аспирантуре

Автор программы:
Суворов Антон Дмитриевич, доцент департамента теоретической экономики,
e-mail: asuvorov@hse.ru

Согласовано Академическим советом аспирантской школы по экономике 
«20» октября 2016 г.,  протокол № 26

Москва - 2016

Настоящая программа не может быть использована другими подразделениями университета и другими вузами без разрешения разработчика программы.

Lanquage: English
Level: PhD students
Credits: The course is graded with 4 ECTs.

1.	Scope of Use
This program establishes the minimal requirements to doctoral students’ knowledge and skills for 38.06.01 "Economics", the profiles "Economic theory", "Economics and National Economy Management (by industry and spheres of activity including economics, organization and management of enterprises, industries, complexes - industry, services, labor economics), "Mathematical and Instrumental Methods of Economics" and determines the content of the course and educational techniques used in teaching the course.
The present syllabus is aimed at faculty teaching the course and doctoral students studying 38.06.01 "Economics", the profiles "Economic theory", "Economics and National Economy Management (by industry and spheres of activity including economics, organization and management of enterprises, industries, complexes - industry, services, labor economics), "Mathematical and Instrumental Methods of Economics.
This syllabus meets the standards required by:
• Educational standard of National Research University “Higher School of Economics” for 38.06.01 «Economics»;
• University curriculum of the doctoral programme for 38.06.01 "Economics", the profiles "Economic theory", "Economics and National Economy Management (by industry and spheres of activity including economics, organization and management of enterprises, industries, complexes - industry, services, labor economics), "Mathematical and Instrumental Methods of Economics".

2.	Learning Objectives
The objectives of the course are:
•	Acquaintance with the main issues in behavioral economics, both theoretical and empirical
•	Deeper understanding of classical approach, its power and limitations
•	Ability to convey this understanding in written form

3.	Main Competencies Developed after Completing the Study of This Discipline
After completing the study of the discipline the doctoral student should have: 
•	To know the main theses of all the papers in required reading and several additional papers
•	To be able to critique papers in behavioral economics (note: not only to criticise, but to evaluate objective limitations in studying behavioral phenomena)

Skill about the ability to analyze the literature, generate independent research ideas and hypotheses, carry out modeling and empirical (including experimental) analysis.

After completing the study of the discipline the PhD student should have developed the following competencies: УК-1, УК-2, УК-7, ОПК-1, ОПК-6, ПК 1.

4.	Place of the Discipline in the Postgraduate Program Structure
This is an elective course for 38.06.01 "Economics", the profiles "Economic theory", "Economics and National Economy Management (by industry and spheres of activity including economics, organization and manage-ment of enterprises, industries, complexes - industry, services, labor economics), "Finances, Money Circulation and Credit", "Mathematical and Instrumental Methods of Economics", "World Economy".
The following knowledge and competences are needed to study the discipline:
• Microcornomics
• Macroeconomics
• Econometrics

5.	Requirements and Grading

Type 
of control

Current	Форма контроля	1 year	Parameters	
		1	2	3	4		
	
Essay	1				The essay should be with co-authored by two PhD students.	
							
Final	Exam					Written final test. Preparation time - 120 minutes.	

6.	Description of course methodology and forms of assessment to be used 

The current control of knowledge in the discipline "Behavioral Economics" is writing an essay.

Final course mark is obtained from the following formula:

Final grade = 0.5*Cumulative Grade + 0.5*Grade for Final test

Cumulative grade = 0.5* Grade for text of Essay + 0.5 * Grade for Presentation of the essay

Essay will be based on a paper chosen by the student from a suggested list of papers (that will be distributed). Essays can be written in groups of 2 students. The essay should briefly communicate the main ideas and results (with intuition) of the paper it is based on, report a constructive critique of the paper and, eventually, contain a brief original extension done by the student(s) herself. Normally the essay should be 5-15 pages long.
Final test is graded out of 100 points.
If the final course mark is below 4 out of 10 then the student can sit one written make-up test in accordance with the HSE’s Internal Regulations. This test covers all the material studied in the course.
The grades are rounded in favour of examiner/lecturer with respect to regularity of class and home works. All grades having a fractional part greater than 0.5 are rounded up.

Table of Grade Accordance
Ten-point
Grading Scale	Five-point
Grading Scale		
1 - very bad
2 – bad
3 – no pass	Unsatisfactory - 2	FAIL	
4 – pass
5 – highly pass	Satisfactory – 3	PASS	
6 – good
7 – very good	Good – 4		
8 – almost excellent
9 – excellent
10 – perfect	Excellent – 5		

7.	Course Overview 
1. Introduction
Reading: Tirole (2002)
Additional reading: Rabin (2002), Fehr and Falk (2002), Camerer et al. (2004), Kahneman and Tversky (2000).

2. Reference-dependent utility, loss aversion; framing effects. Endowment effect. Endogenous reference standards.
Reading: Kahneman and Tversky (1979), Kahneman, Knetsch and Thaler (1990), Plott and Zeiler (2005), Camerer et. al. (1997), Farber (2005),  Kőszegi and Rabin (2006).
Additional reading: List (2003), Kahneman and Tversky (2000), Goette, Huffman and Fehr (2004), Falk and Knell (2004).

3. Attitude to information. Beliefs as an argument of utility functions. Heuristics and biases
Reading: Akerlof and Dickens (1982), Kőszegi (2006), Ariely et al. (2003), Frederick (2005).
Additional reading: Eliaz and Spiegler (2006), Brocas and Carrillo (2004).

4. Social preferences: fairness, reciprocity, social signaling.
Reading: Fehr and Schmidt (2003), Fehr and Falk (2002), Bernheim (1994).
Additional reading: Kahneman, Knetsch and Thaler (1986), Charness and Rabin (2002), Dana-Weber-Кuang (2003).

5. Intertemporal choice, self-control. Imperfect memory. Overconfidence.
Reading: O’Donohgue and Rabin (1999), Benabou and Tirole (2002), Laibson (1997), Van de Steen (2005).
Additional reading: Hirshlefer and Welch (2002), Fudenberg and Levine (2004), Biais et al. (2005).

6. Incentives, motivation.
Reading: Benabou and Tirole (2003), Fehr and Falk (2002).
Additional reading: Gneezy and Rustichini (2000a, 2000b).

7. Some applications. Miscellaneous topics.
Reading: Laibson (1997), Benartzi-Thaler (2001), Mullainathan and Shleifer (2005).
Additional reading: Thaler (1999).

8.	Educational technology
At the lectures, theoretical material is given and tasks are analyzed.

9.	Evaluation tools for current control and certification of a graduate student
Approximate tasks from a test.

10.	Sample test questions

Define a pair of the behavioral biases that produce the opposite empirical predictions (Hint: what is the most probable outcome of a dice roll after two consecutive rolls that both rolled six?). How we can distinguish mistakes (random noise) from predictable behavioral biases in this situations?
What are the common biases that can be observed in stock market participants? Name three biases with examples.
Discuss the advantages and disadvantages of “libertarian paternalism” in some specific policy measure (for example, default option for pension account).
What theory is the main contribution of D.Kahneman to the behavioral economics? (Hint: remember the asymmetric graph)
Write the general form of Fehr-Schmidt preferences. Describe the elements and the general purpose of using this form of preferences in modelling.
Policies on late work
Late essays are discounted.

11.	Reading and Materials
All the papers in the list below are available in online collections Jstor, Sciencedirect, etc., to which HSE provides access to its faculty and students.

Literature:
•	Akerlof J. and W. Dickens (1982) “The Economic Consequences of Cognitive Dissonance”, American Economic Review, 72(3), 307-319.
•	Ariely, D., G. Loewenstein, and D. Prelec (2003): “Coherent Arbitrariness: Stable Demand Curves without Stable Preferences", Quarterly Journal of Economics, 118(1).
•	Benabou R. and J. Tirole (2002) “Self-Confidence and Personal Motivation”, Quarterly Journal of Economics, 117(3): 871-915.
•	Benabou R. and J. Tirole (2003) “Intrinsic and Extrinsic Motivation”, Review of Economic Studies, 70: 489-520.
•	Bernheim D. (1994) “A Theory of Conformity”, Journal of Political Economy, 102: 842-877.
•	Biais B, D. Hilton, K. Mazurier and S. Puget (2005) “Judgmental overconfidence, self-monitoring and trading performance in an experimental financial market”, Review of Economic Studies, 72: 287-312.
•	Brocas I. and J. Carrillo (2009) “Information acquisition and choice under uncertainty”, Journal of Economics & Management Strategy, 18(2), 423-455. .
•	Camerer C., Babcock L, Loewenstein G. and R. Thaler (1997) ““Labor Supply of New York City Cabdrivers: One Day at a Time”, Quarterly Journal of Economics, 112 (May), pp. 407–41.
•	Camerer C., Loewenstein G. and M. Rabin eds. (2004) Advances in Behavioral Economics, Russel Sage Foundation, Princeton University Press.
•	Charness, G., and M. Rabin (2002): “Understanding Social Preferences with Simple Tests", Quarterly Journal of Economics, 117(3): 817-869.
•	Dana J., R. Weber and  J. Кuang (2003) “Exploiting moral wriggle room: Behavior inconsistent with a preference for fair outcomes”, Economic Theory, 33(1), 67-80.
•	Eliaz K. and R. Spiegler (2006) “Can Anticipatory Feelings Explain Anomalous Choices of Information Sources?”, Games and Economic Behavior, 56, pp. 87-104.
•	Elster, J. and G. Loewenstein eds. (1992) Choice Over Time, Russell Sage Foundation.
•	Falk A. and M. Knell (2004), “Choosing the Joneses: Endogenous Goals and Reference Standards”, Scandinavian Journal of Economics, 106 (3), pp. 417-435.
•	Farber H. (2005) “Is Tomorrow Another Day? The Labor Supply of New York City Cabdrivers”, Journal of Political Economy, 113(1), pp. 46-82.
•	Fehr E. and A. Falk (2002) “Psychological Foundations of Incentives”, European Economic Review, 46: 687-724.
•	Fehr E. and K. Schmidt (2003) “Theories of Fairness and Reciprocity - Evidence and Economic Applications”, in M. Dewatripont, L. Hansen and St. Turnovsky (Eds.), Advances in Economics and Econometrics - 8th World Congress, Econometric Society Monographs, Cambridge, Cambridge University Press 2002.
•	Frederick, S. (2005) “Cognitive Reflection and Decision Making”, Journal of Economic Perspectives, 19(4), pp. 25–42
•	Fudenberg D. and D. Levine (2006) “A Dual Self Model of Impulse Control”, American Economic Review, 96: 1449-1476.
•	Gneezy, U. and Rustichini, A. (2000a), “A Fine is a Price”, Journal of Legal Studies, 29 (1) (part 1), 1–17.
•	Gneezy, U. and Rustichini, A. (2000b), “Pay Enough or Don’t Pay at All”, Quarterly Journal of Economics, 115(3), 791–810.
•	Goette, L, D. Hummond and E. Fehr (2004) “Loss Aversion and Labor Supply”, Journal of European Economic Association, 2(2-3), pp. 216-228.
•	Hertwig, R., & Ortmann, A. (2003). “Economists’ and psychologists’ experimental practices: How they differ, why they differ and how they could converge” In I. Brocas & J. D. Carillo (Eds.), The psychology of economic decisions (pp. 253–272). New York: Oxford University Press.
•	Hirshleifer D. and I. Welch (2004) “An Economic Approach to the Psychology of Change: Amnesia, Inertia, and Impulsiveness”, Journal of Economics & Management Strategy, Volume 11, Number 3,  379–421
•	Kahneman, D., J. Knetsch and R. Thaler (1986) “Fairness as a Constraint on Profit Seeking: Entitlements in the Market”, American Economic Review, 76(4), pp. 728-741.
•	Kahneman, D., J. Knetsch and R. Thaler (1990) “Experimental Tests of the Endowment Effect and of the Coase Theorem”, Journal of Political Economy, 86(6), pp. 1325-48.
•	Kahneman D. and A. Tversky (1979) ‘Prospect Theory’, Econometrica. Reprinted in Kahneman and Tversky (2000)
•	Kahneman D. and A. Tversky, eds. (2000) Choices, Values and Frames, Russell Sage Foundation, New York.
•	Kőszegi, B. (2006) “Ego Utility, Overconfidence, and Task Choice”, Journal of the European Economic Association, 4(4), pp. 673-707
•	Kőszegi, B. and M. Rabin (2006) “A Model of Reference-Dependent Preferences”, Quarterly Journal of Economics, 121 (4), pp. 1133-1166. 
•	Laibson D. (1997) “Golden Eggs and Hyperbolic Discounting”, Quarterly Journal of Economics, 112, 443-478.
•	List J. (2003) “Does Market Experience Eliminate Market Anomalies?” Quarterly Journal of Economics, 118(1), pp. 41-71. 
•	Mullainathan S. and A. Shleifer (2005) “The Market for News”, American Economic Review, 95(4): 1031-1053.
•	O’Donoghue T. and M. Rabin (1999) “Doing it now or later”, American Economic Review, 89(1): 103-124.
•	Plott C. and K. Zeiler (2005) “The Willingness to Pay-Willingness to Accept Gap, the "Endowment Effect," Subject Misconceptions and Experimental Procedures for Eliciting Valuations”, American Economic Review, 95(3), pp. 530-545.
•	Rabin M. (2002) “A Perspective on Psychology and Economics”, European Economic Review, 46: 657-685.
•	Thaler R. (1992) The Winner’s Curse: Paradoxes and Anomalies of Economic Life. Free Press, New York.
•	Thaler R. (1991) Quasi-Rational Economics. Russell Sage Foundation, New York.
•	Thaler, R., (1999) "Mental Accounting Matters", Journal of Behavioral Decision Making, Vol. 12:183-206.
•	Thaler, R. and S. Benartzi (2004) "Save More Tomorrow: Using Behavioral
Economics to Increase Employee Savings", Journal of Political Economy, Vol. 112:1, 164-187.
•	Tirole J. (2002) “Rational Irrationality: Some Economics of Self-Management”, European Economic Review, 46: 633-655.

12.	Equipment.
The course requires a laptop and a projector.