DGPE PhD course: Bounded Rationality and Market Interaction

3-7 August 2020. Lecturer: Kfir Eliaz

2019.10.01 | Susanne Christensen

Date Mon 03 Aug Fri 07 Aug
Time 09:00    18:00
Location Online via Zoom


The course explores the market implications of systematic psychological biases. Put differently, the aim is to understand how rational, profit-maximizing firms interact with boundedly rational economic agents. This course will focus on market applications rather than on decision-theory or experiments. In particular, it will emphasize the fact that once we abandon rationality, implications for welfare and regulations can be very subtle and counter-intuitive.

This course will introduce a number of recent theoretical frameworks for incorporating behavioral biases (anecdotal reasoning, limited attention, model misspecification, dynamic inconsistency) into models of individual and strategic decision-making. The course is aimed at a broad range of students who are interested in studying the implications of behavioral biases to questions in fields such as industrial organization, public economics, development, health economics, and political economy.

The course is equivalent to 5 ECTS points.

For PhD students at AU, the course has been pre-approved as an internal PhD course.  


Professor Kfir Eliaz, Tel Aviv University.


5-day course with lectures and discussion of student exercises. Teaching will be online via Zoom.

Monday, Tuesday, Wednesday and Thursday (5 x 45 min with breaks)

  • 9.00–9.45 Lecture
  • break
  • 10.00–10.45 Lecture
  • 14.00-14.45 Lecture
  • break
  • 15.00-15.45 Lecture
  • 17.00-17.45 Lecture


  • 9.00–9.45 Lecture
  • break
  • 10.00-10.45 Lecture
  • 14.00-14.45 Lecture
  • break
  • 15.00-15.45 Lecture

Exam 26 August

  • 9.00-11.00: take-home exam via Wiseflow + 15 min for scanning/uploading solutions



Deadline for registration is 31 July 2020. 

Course fee

The course is free of charge for:

1. DGPE members from AU, KU, CBS and SDU.

2. PhD students from Economics Departments at Nordic universities outside Denmark.

The course fee is EUR200 for other participants.

Academic contact

Alexander Koch, akoch@econ.au.dk

Administrative contact

Susanne Christensen, sch@econ.au.dk

DGPE Courses