Behavioral economics refers to the research program that attempts to incorporate more realistic psychological foundations into models of economic behavior. It initially started by drawing experimental evidence and insights from psychology and other social sciences suggesting the standard model of rational decision-making provides an inadequate description of behavior. But, more recently, behavioral economics is finding its way into policy evaluation/normative economic analysis as well. This course explores some of the advances in this field. We will study foundational topics in behavioral economics, with a focus on theories of behavior that aim to incorporate non-standard phenomena into classic economic models, with consideration of intertemporal decision-making, choice under uncertainty, and learning.

The course will be centered around research paper discussions, allowing students to develop the critical skills necessary to evaluate and put in practice the latest research findings in the field of Behavioral Economics. Students will have the opportunity to shape the structure of the course by choosing specific readings within each topic.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

1. demonstrate an in-depth understanding of what the Behavioral Economics program is and how it differs from classical economic analysis;
2. demonstrate an in-depth understanding of the methods used in Behavioral Economics, the advantages, disadvantages, criticisms, and limitations;
3. describe and interpret the latest findings from Behavioral Economics research, demonstrating an understanding of how they translate into individual behavior and apply them to public policy questions;
4. demonstrate an in-depth understanding of the main theoretical and empirical debates in Behavioral Economics and evaluate the contribution of Behavioral Economics to broader economic knowledge, as well as other areas.

Research-Led Teaching

The course will involve research paper discussions, allowing students to develop the critical skills necessary to evaluate and put in practice the latest research findings in the field of Behavioral Economics. Students will also complete a data project that will involve implementing techniques from recent research papers. Final class schedule is subject to changes as time permits.

Field Trips

N/A

Additional Course Costs

N/A

Examination Material or equipment

Calculator

Required Resources

Textbook -- "The foundations of Behavioral Economic Analysis" by Sanjit Dhami. The e-book is available from the ANU library.

Recommended Resources

An extensive list of references will be made available through Canvas. A detailed reading list will be provided week-by-week.

Staff Feedback

Students will be given feedback on their presentation during the scheduled meeting. Students may request a meeting to get feedback on the progress of their critical report before submission.

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). Feedback can also be provided to Course Conveners and teachers via the Student Experience of Learning & Teaching (SELT) feedback program. SELT surveys are confidential and also provide the Colleges and ANU Executive with opportunities to recognise excellent teaching, and opportunities for improvement.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Introduction and Expected Utility
2	The Paradoxes of Expected Utility Theory
3	Non-EU models of risk preferences
4	Data project: The hot hand effect
5	Prospect Theory
6	Ambiguity Aversion
7	Time Preferences
8	Other regarding preferences
9	Games with risk preferences and other regarding preferences
10	Level-k and Cognitive Hierarchy models
11	Games with non-EU preferences
12	Cognitive Uncertainty

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
Participation (10%)	10 %	*	*	1, 2, 3, 4
Problem Sets (20%)	20 %	*	*	1, 2, 3, 4
Data project and report (20%)	20 %	25/09/2026	09/10/2026	1, 2, 3, 4
Final Exam (50%)	50 %	05/11/2026	09/12/2026	1,2,3,4

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

ANU has educational policies, procedures and guidelines , which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Integrity Rule before the commencement of their course. Other key policies and guidelines include:

• Academic Integrity Policy and Procedure
• Student Assessment (Coursework) Policy and Procedure
• Extenuating Circumstances Application
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure
• Code of practice for teaching and learning

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the Academic Skills website. In rare cases where online submission using Turnitin software is not technically possible; or where not using Turnitin software has been justified by the Course Convener and approved by the Associate Dean (Education) on the basis of the teaching model being employed; students shall submit assessment online via ‘Canvas’ outside of Turnitin, or failing that in hard copy, or through a combination of submission methods as approved by the Associate Dean (Education). The submission method is detailed below.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Participation

Classes will regularly include discussion of research papers, which will constitute 20% of the overall grade as per Assessment Task 1.

• Higher marks (8-10) will be awarded for consistent demonstration of engagement and a high level of understanding of the papers being discussed.
• 7 is awarded for a somewhat consistent demonstration of engagement and demonstration of a reasonable level of understanding of the majority of the papers being discussed.
• 6 is awarded for a somewhat consistent demonstration of engagement and demonstration of a reasonable level of understanding of some of the papers being discussed.
• 5 is awarded for somewhat inconsistent demonstration of engagement and demonstration of a passable level of understanding of the papers being discussed.
• less than 5 is awarded for an inconsistent to a little demonstration of engagement and rudimentary to a little demonstration of understanding of the papers being discussed.

A partway mark will be provided to you in week 6.

Assessment Task 1

Participation (10%)

The course will involve regular discussions of published research papers. Therefore students will receive a grade based on their contributions to discussions, comments, and questions during every class and how their discussion demonstrates their understanding of the learning outcomes for the course. Exceptions will be considered on a case-by-case basis (e.g. cases of illness or schedule conflict). The grade is not earned simply by turning up to class. Provisional marks will be released after week 6.

Assessment Task 2

Problem Sets (20%)

There will be five problem sets throughout the semester, with problem sets worth 4% each. Problem sets will be submitted in the tutorial in the relevant week, and returned to students in the following weeks tutorial.

Problem sets will be due on the day of the class tutorial in weeks 2, 4, 6, 8 and 10. Each problem set will be returned 1 week after it is due.

Assessment Task 3

Data project and report (20%)

Students will collect their own data, and analyze the data for evidence of the "hot hand effect". Students will apply techniques learnt in class, and from research papers, to complete the report. It will be submitted electronically. Data collection will need to be completed by the end of Week 3 (14 August 2026), and the report will be due by end of Week 7 (25 September 2026). . Information about this assessment will be given no later than week 1 through Canvas.

Assessment Task 4

Final Exam (50%)

To be held during the final exam period, on campus. 2 hours, will cover material from the whole course. Questions will be short answer. Handwritten notes allowed.

Academic Integrity

Academic integrity is a core part of the ANU culture as a community of scholars. The University’s students are an integral part of that community. The academic integrity principle commits all students to engage in academic work in ways that are consistent with, and actively support, academic integrity, and to uphold this commitment by behaving honestly, responsibly and ethically, and with respect and fairness, in scholarly practice.

The University expects all staff and students to be familiar with the academic integrity principle, the Academic Integrity Rule 2021, the Policy: Student Academic Integrity and Procedure: Student Academic Integrity, and to uphold high standards of academic integrity to ensure the quality and value of our qualifications.

The Academic Integrity Rule 2021 is a legal document that the University uses to promote academic integrity, and manage breaches of the academic integrity principle. The Policy and Procedure support the Rule by outlining overarching principles, responsibilities and processes. The Academic Integrity Rule 2021 commences on 1 December 2021 and applies to courses commencing on or after that date, as well as to research conduct occurring on or after that date. Prior to this, the Academic Misconduct Rule 2015 applies.

 

The University commits to assisting all students to understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. All coursework students must complete the online Academic Integrity Module (Epigeum), and Higher Degree Research (HDR) students are required to complete research integrity training. The Academic Integrity website provides information about services available to assist students with their assignments, examinations and other learning activities, as well as understanding and upholding academic integrity.

Online Submission

You will be required to electronically sign a declaration as part of the submission of your assignment. Please keep a copy of the assignment for your records. Unless an exemption has been approved by the Associate Dean (Education) submission must be through Turnitin.

Hardcopy Submission

For some forms of assessment (hand written assignments, art works, laboratory notes, etc.) hard copy submission is appropriate when approved by the Associate Dean (Education). Hard copy submissions must utilise the Assignment Cover Sheet. Please keep a copy of tasks completed for your records.

Late Submission

No submission of assessment tasks without an extension after the due date will be permitted. In this case, a mark of 0 will be awarded.

Referencing Requirements

The Academic Skills website has information to assist you with your writing and assessments. The website includes information about Academic Integrity including referencing requirements for different disciplines. There is also information on Plagiarism and different ways to use source material. Any use of artificial intelligence must be properly referenced. Failure to properly cite use of Generative AI will be considered a breach of academic integrity.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. Extensions may be granted for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information.
In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service – including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy.
If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes.

Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Accessibility for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents all ANU students