Course syllabus 5IE312 - Economics and Psychology I (NF - WS 2010/2011)

     Czech          English          

Course code: 5IE312
Course title in language of instruction: -- item not defined --
Course title in Czech: Economics and Psychology I
Course title in English: Economics and Psychology I
Number of ECTS credits allocated: 4 (1 ECTS credit = 26 hours of workload)
Mode of delivery: face-to-face; 2/0 (hours of lectures per week / hours of seminars per week) as semestral course
Mode of completion: examination
Language of instruction: czech
Level of course and year of study: bachelor (first cycle): 2; master (second cycle): 1
Semester: WS 2010/2011
Name of lecturer(s): Ing. Petr Houdek (examiner, lecturer)
Ing. Mgr. Petr Koblovský, Ph.D. (lecturer, supervisor)
Prerequisites and co-requisites: none
Recommended optional programme components: none
Work placement: none
 
Aims of the course:
The course is an introduction to the psychology of economic decision-making. We will analyze experimental and real data to see how psychological phenomena may influence behavior of individuals and dynamics of whole economies.
 
Learning outcomes and competences:
Upon successful completion of this course, students will be able to
A. identify specific psychological rules of bounded human rationality, will power and self-interest.
B. They will be able to use obtained knowledge in the analysis, explanation or prediction of ir/rational human behavior in specific situations (the pursuit of happiness, savings, consumption, labor market, social status seeking, investment, politics).
C. They will learn to derive causation of some economic phenomena from individual human psychology, while at the same time they recognize the economics could not be reduced to the psychology due to the problems of aggregation of heterogenous behavior. Students should also learn that in problem solving situatuons thinking is more important than memory.
 
Course contents:
1. Introduction - Have economics and psychology different views on the same problem? (intersection, differences, and the methodology of social sciences, experiments).
2. Positive psychology - Non/achievable goals of human effort (the pursuit of happiness). Why do we regret the past and misjudgment the future? Normative economics - Is there a solution and when should we choose it?
3. - 4. Reference-dependent preferences (Prospect theory I. – loss aversion, endowment effect, status quo bias, framing, and anchoring).
5. - 6. The pleasure of gambles (Prospect theory II. - risk and uncertainty aversion, certainty effect, hubris, nonlinear probability judgement).
7. - 8. Irresistible attraction of tomorrow (intertemporal choice, problems of self-power, present bias, errors in the assessment of the future and the past).
9. - 10. People around us (selfishness, altruism, reciprocity, and social status).
11. Mid-term test + Introduction to behavioral game theory.
12. Mass psychological phenomena = economics? Herd behavior, bubbles in the markets, behavioral finance.
13. Application of obtained knowledge and Q&A - Marketing, advertising, politics, media, etc.
 
Learning activities, teaching methods and workload (hours):
Type of teaching methodDaily attendance
Participation in lectures26 h
Preparation for lectures13 h
Preparation of term paper39 h
Preparation for mid-term test(s)13 h
Preparation for final oral exam13 h
Total104 h
 
Assessment methods and criteria:
Requirement typeDaily attendance
Active lecture/seminar/workshop/tutorial participation5 %
Term paper40 %
Mid-term test(s)20 %
Final oral exam35 %
Total100 %
 
Special requirements and details:
When graded 4+ student will write an additional test within the scope of the mid-term test. Students have to select the topic of a term paper no later than on the date of the mid-term test. It is recommended to write term paper in a team of 2 - 3 students. The final exam will be mainly focused on the content and theme of the term paper.
 
Reading:
TypeAuthorTitlePublished inPublisherYearISBN
RQAKERLOF, G. A. -- SHILLER, R. J.Animal spirits : how human psychology drives the economy, and why it matters for global capitalism.Princeton:Princeton University Press, 2009.978-0-691-14233-3
RQARIELY, D.Jak drahé je zdarma : proč chytří lidé přijímají špatná rozhodnutí : iracionální faktory v ekonomice i v životě.Praha:Práh, 2009.978-80-7252-239-2
RQGILBERT, D. T.Škobrtnout o štěstí : jak se chytá zlatá muška.Praha:Dokořán, 2007.978-80-7363-127-7
RECAMERER, C. -- LOEWENSTEIN, G. -- RABIN, M.Advances in behavioral economics.New York:Russell Sage Foundation, 2004.0-691-11682-2
RESMITH, V. L.Rationality in economics : constructivist and ecological forms.Cambridge:Cambridge University Press, 2008.978-0-521-87135-8
RETHALER, R. H.The winner's curse : paradoxes and anomalies of economic life.New York:Free Press, 1992.0-02-932465-3
REHoudek, P., Koblovský, P. (2010), Horizonty omezených: Úvod do behaviorální ekonomie, skriptum VŠE (v přípravě)

RQrequired
RErecommended

 
Regular course units:
DayFrom-tillRoomTeacherTypeFrequencyCapacity
Friday07:30-09:00SB 411P. HoudekLectureEvery week40
 
Block course units:
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Type of course (eligible study programmes and course groups):
FacultyProgramme/field codeProgramme modeCourse group codeStudy period
FFUB-FU-BPfull-timecVBWS 2006/2007
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B-FU-UCfull-timecVBWS 2006/2007
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C-KM-SPfull-timecVMWS 2006/2007
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FMVB-ME-MOfull-timecVBWS 2006/2007
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C-ME-EIfull-timecVMWS 2006/2007
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C-ME-IDSfull-timecVMWS 2010/2011
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C-ME-MPfull-timecVMWS 2006/2007
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C-PL-PLfull-timecVMWS 2006/2007
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FPHB-EM-PEfull-timecVBWS 2006/2007
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distancecVMWS 2006/2007
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oVWS 2005/2006
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Course groups (click to show/hide)
xP (oP, hP etc.)core curriculum courses
xV (oV, hV etc.)field elective courses
cVx (cVB etc.)general elective courses
xJx (fJ1, oJ2 etc.)language (elective) courses


Last modification made by Ing. Marek Vokoun on 14. 6. 2010.

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