LECON2486 – SAE III
English – UCL
Behavioral Economics and Industrial Organization
Prof. Johnen
Description
The seminar will introduce basic concepts in Behavioral Ecconomics. In particular, models of decision
making that capture empirically tested behavioral regularities and biases such as time inconsistency,
loss aversion, and overconfidence. As a second step, the seminar will discuss applications of
these concepts to market settings. How do firms design products and contracts as a response to
behavioral biases and consumer mistakes? Do competitive firms mitigate or exploit consumer
mistakes? Which policies can be helpful to improve market performance in the presence of
behavioral biases?
The seminar aims at giving students an active role. Students are encouraged to read research papers,
and to present and actively discuss them with each other in the seminar.
Language: English