RUBEN associates teach a number of courses through the University of Cape Town’s School of Economics that relate to behavioural and experimental economics.

 

Undergraduate Course

Cooperation and competition (ECO2007S)

This is an introductory course in game theory, the framework for analysing strategic interaction. Game theory is (among other things), the basic technology for understanding most phenomena in microeconomics and some phenomena in macroeconomics, along with many processes in political science, law, evolutionary biology, and the science of animal behaviour (ethology). In this course we study the basic structure of the theory and discuss experiments that challenge or support the predictions of game theory.

 

Postgraduate Courses

Experiments in economics (ECO4029S)

This course is an introduction to the methodology of experimental economics and its application to specific topics such as decision making under risk and over time, the provision of public goods, and bargaining. We primarily focus on laboratory experiments but we also cover field experiments, and briefly discuss randomised evaluations and natural experiments. The course starts with a consideration of the scope and role of experiments in economics. It then explores some basic principles of experimental design such as the role of randomisation and control in experimentation, the use of incentives, and the interplay of theory, experimental design, and statistics. Thereafter we focus on specific examples of experiments from both decision theory and game theory.

Environmental Economics (ECO4052S)

The aim of the course is introduced students to key ideas in environmental economics and policy relating to both local and global environmental issues. The course is designed to bring to light the relationship between economic activity and the environment, and the potential for environmental policy to improve the quality of life we and future generations can enjoy. Major topics covered in the course include externalities and the implication on market failure, environmental policy instruments, management of common property resources, risk and uncertainty, environmental justice, economic growth and the environment, cost-benefit analysis and valuation methods for environmental amenities, renewable and non-renewable resources, and the concept of environmental sustainability. In introducing students to these topics, considerable attention is devoted to key theoretical and policy debates relating to environmental challenges and their implications for sustainable development.

(The course also discusses how insights from behavioural economics are applied to the study of sustainable development)

Behavioural Economics (ECO5064S)

Recent developments in behavioural economics, behavioural decision theory, experimental psychology, neuroscience and other fields challenges the behavioural assumptions embedded in neoclassical microeconomic theory and decision theory, and suggests refinements to economic theory that promise to be more relevant to real world applications. The first major objective of the course is to delve into these recent developments. Topics covered include experimental design, social preferences, risk attitudes, loss aversion, probability weighting functions, cumulative prospect theory, and the neuroeconomics of altruism, cooperation, risk and trust.

The second objective of the course is to understand the interplay between psychology and poverty. Many of the conditions that worsen decision-making might actually be caused by poverty. If the poor have to live hand-to-mouth, this in itself is taxing and a preoccupation with these concerns leaves fewer mental resources for other decisions or concerns. This part of the course takes a critical look at frontier research on the causal relationship between cognition (fluid intelligence, executive functioning, planning, working memory) and poverty. The course concludes by examining the neuroscientific corroboration of the so-called system I and system II thinking that underpins this work.

Natural Resource Economics (ECO5052S)

The course consists of a mixture of lectures, readings, seminars and practical/problem solving sessions. It combines theoretical analysis with discussions on specific environmental policies as applied to climate change, biodiversity, renewable and non-renewable resources. It is intended to familiarise students with important contributions of the theoretical and applied literature as well as current research in environmental and resource economics. Finally, the course provides students with a better understanding of current debates and issues in the environmental field.

(The course also focusses on recent advances in behavioural economics)

Microeconomics II (ECO6007F)

This is a Masters/PhD course in game theory and information economics. We begin with choice under risk, because this provides the decision theoretic framework of game theory. We then cover the basic ingredients of game theory, simultaneous move games, and sequential move games. The section on information economics discusses principal-agent models, moral hazard, and adverse selection.