For a long time, the standard economic paradigm was dominated by models whose core assumption was that of rationality. However, various findings from cognitive and social psychology suggest that people are often prone to systematic errors, and have unexpected beliefs and preferences. How are the real people different from homo economicus? What heuristics do we rely upon in our reasoning and how may these heuristics lead us astray? How can irrationality be exploited in the markets and in politics? Should the government intervene to protect people from their own irrational choices? In the Economics and Psychology seminar, we will try to find answers to these questions as well as to many others. The seminar concentrates on how the psychological findings may enhance our reasoning about economic affairs and on their implications for applied policy. The core parts of our effort in the seminar will be home-assigned readings and classroom discussion. In the Winter Semester of 2021/22, the course will be taught online via MS Teams.

For a long time, the standard economic paradigm was dominated by models whose core assumption was that of rationality. However, various findings from cognitive and social psychology suggest that people are often prone to systematic errors, and have unexpected beliefs and preferences. How are the real people different from homo economicus? What heuristics do we rely upon in our reasoning and how may these heuristics lead us astray? How can irrationality be exploited in the markets and in politics? Should the government intervene to protect people from their own irrational choices? In the Economics and Psychology seminar, we will try to find answers to these questions as well as to many others. The seminar concentrates on how the psychological findings may enhance our reasoning about economic affairs and on their implications for applied policy. The core parts of our effort in the seminar will be home-assigned readings and classroom discussion. In the Winter Semester of 2021/22, the course will be taught online via MS Teams.

Upon successful completion of the course the students will:

1. understand the relationship between economics and psychology
2. recognize the importance of rationality (or lack of it) for the explanation of human behavior
3. gain understanding of currently debated issues in behavioral economics
4. be able to discern the implications of scientific findings to the applied policy

Upon successful completion of the course the students will:

1. understand the relationship between economics and psychology
2. recognize the importance of rationality (or lack of it) for the explanation of human behavior
3. gain understanding of currently debated issues in behavioral economics
4. be able to discern the implications of scientific findings to the applied policy

In the Winter Semester of 2021/22, the course will be taught online via Zoom.

 

Join Zoom Meeting
https://cuni-cz.zoom.us/j/95192477120?pwd=alRLUHZCc2N1YUN4dExSZVFlSlQxUT09

Meeting ID: 951 9247 7120
Passcode: 086255

 

Recommended semester: 3-5

The contents of the course help with the preparation for the Comprehensive Exam in the Social Sciences (CESS).

Obligatory:

• Kahneman, Daniel. Thinking, fast and slow. London: Allen Lane, 2011, 499 s. ISBN 978-1-846-14606-0.

 

A minimum score for successful completion of the course is 60 points (out of 100). Attendance is compulsory with the maximum of 3 absences.

• 30 points for active participation in a seminars.
• 30 pts for a presentation on an approved topic.
• 40 pts for a test that covers the basic concepts, theories, and facts from the seminars

The course does not have any official prerequisites. However, it is advisable that the students already possess some elementary knowledge of economics when taking the course.