Only open to MSc Psychology (research) students
Behavioural economics extends economic principles by allowing that our decisions are affected by social and psychological influences, as well as a rational calculation of benefits and costs—the assumption being that we are not super-rational beings, but that there are limits to our rational decision making (Baddeley, 2017). Bounded rationality—a term coined by Herbert Simon who was a psychologist and computer scientist as well as Nobel Laureate in Economics—captures the idea that we are limited and bounded by various constraints when we are deciding. Cognitive constraints may limit our ability to choose the best strategies. Limits on, for example, executive functions mean that sometimes we are forced or nudged towards a particular option because we do not have the information or cognitive processing time or power to consider other options. These insights gained more acceptance due to the influential work and best-selling books of two other Nobel Laureates in Economics, Daniel Kahneman (Thinking, fast and slow) and Richard Thaler (Nudge, co-authored with Cass Sunstein).
Behavioural economics brings economics together with insights from a wide range of other disciplines, for example psychology (especially social psychology), sociology, neuroscience, and evolutionary biology. Using a multidisciplinary blend of ideas, behavioural economic insights will enrich students’ understanding of economic and financial decision making. In the course, we will focus on a few key themes, amongst others: heuristics and biases; social influence; nudging and boosting; and scarcity. Moreover, as governments and other policy-makers are embedding these insights more and more into their policy designs, we will focus also on the policy implications and lessons that are (or should be) adopted by public policy-makers by addressing influential policy studies and behavioural interventions based on behavioural economic insights.
During the course, students:
1. Gain specialized knowledge of theories, concepts, methods, and research findings central to the study of social decision making from a behavioural economics perspective.
2. Acquire knowledge and skills to develop and write a scientific proposal for an intervention study based on behavioural economic insights and relevant for public policy.
3. Enhance their scientific thinking and research skills to conduct scientific research both inside and outside the university.
For the timetables of your lectures, work groups and exams, please select your study programme in:
Students need to enroll for lectures and work group sessions.
Master’s course registration
Students are not automatically enrolled for an examination. They can register via uSis from 100 to 10 calendar days before the date. Students who are not registered will not be permitted to take the examination.
Registering for exams
Mode of instruction
8 2-hour work group sessions (attendance of all sessions is mandatory).
The final grade is based on:
- Organizing and moderating a discussion meeting (30%; course objectives: 1, 3),
- Four short discussion essays (30%; course objectives 1, 3)
- An intervention proposal (30%; course objective 1, 2, 3), and a proposal presentation (10%; course objective 2, 3).
The Institute of Psychology follows the policy of the Faculty of Social and Behavioural Sciences to systematically check student papers for plagiarism with the help of software. Disciplinary measures will be taken when fraud is detected. Students are expected to be familiar with and understand the implications of this fraud policy.
Selection of scientific articles; examples:
Five examples of included readings:
Kahneman, D. (2003). A perspective on judgment and choice. Mapping bounded rationality. American Psychologist, 58, 697–720.
Kahneman, D., & Frederick, S. (2002). Representativeness revisted: Attribute substitution in intuitive judgment. In T. Gilovich, D. Griffin, & D. Kahneman (Eds.), Heuristics and biases (pp. 49–81). New York: Cambridge University Press.
Mani, A., Mullainathan, S., Sharif, E., Zhao, J. (2013). Poverty impedes cognitive function. Science, 341, 976–980. (including supplementary material).
Shah, A. K., Mullainathan, S., & Sharif, E. (2012). Some consequences of having too little. Science, 338, 682–685. (including supplementary material).
Thaler, R. H. (1999). Mental accounting matters. Journal of Behavioral Decision Making, 12, 241–268.
Prof. Dr. Wilco van Dijk