B8241 - Behavioral Economics and Collective Well-being

Learning outcomes

The course analyzes, through the tools of behavioral economics, how to organize decision-making processes to improve individual and collective outcomes. At the end of the course, students will be able to understand the psychological foundations of altruism and social behavior, using these concepts to design nudges that benefit individuals and society; critically evaluate the effectiveness of nudges in various contexts, identifying when they can enhance individual and social well-being; and develop and support nudging strategies that consider ethical implications and promote equitable social change.

Course contents

The course will cover the following topics:

Part I – Understanding Human Behavior 1. Foundations of Behavioral Economics

• Classical and behavioral models of decision-making
• Bounded rationality, heuristics, and cognitive biases
• Prospect Theory and decision-making under risk
• Intertemporal choice and self-control

2. Social Preferences and Prosocial Behavior

• Altruism, Reciprocity, and Cooperation
• Fairness, Inequality Aversion, and Social Value Orientation
• Intrinsic and Extrinsic Motivation
• Motivational Crowding-Out and Crowding-In
• Trust and Social Norms
• Prosocial Behavior

Part II – Major Social Challenges 3. Cooperation and Public Goods

• Social dilemmas and collective action problems
• Public goods and the tragedy of the commons
• Social capital and cooperation within organizations and communities

4. Inequality and Social Justice

• Perceptions of inequality and meritocracy
• Redistributive preferences
• Inequalities in income, opportunity, and gender

5. The Economics of Care

• The economics of care and care work
• Social norms and the gender division of labor
• Population aging and caregiving
• Public policies for welfare and long-term care

Part III – From Theory to Policy 6. Designing Behavioral Interventions

• Choice architecture and nudging
• Defaults, framing, and social norms
• Nudges, boosts, incentives, and other policy tools

7. Evaluating and Debating Behavioral Policies

• Randomized controlled trials, field experiments, and A/B testing
• Assessing the effectiveness and persistence of behavioral interventions
• Autonomy, transparency, equity, and distributional effects

Readings/Bibliography

Teaching Materials and Readings

The main reference texts for the course are:

• Pelligra, V. (2025). Lavorare per gli altri. Un'economia del significato. Bologna: Il Mulino.
• Piketty, T. and Sandel, M. J. (2025). Uguaglianza. Che cosa significa e perché è importante. Milan: La nave di Teseo.
  
• Thaler, R. H., & Sunstein, C. R. (2022). Nudge. La spinta gentile. La nuova strategia per migliorare le nostre decisioni su denaro, salute e felicità (definitive edition). Milan: Feltrinelli.
• Zelizer, V. A. (2009). Vite economiche. Valore di mercato e valore della persona. Bologna: Il Mulino.

Recommended Readings

Behavioral Economics

• Kahneman, D. (2012). Pensieri lenti e veloci. Milan: Mondadori.
• Thaler, R. H. (2016). Misbehaving. La nascita dell'economia comportamentale. Turin: Einaudi.

Cooperation and Social Preferences

• Bowles, S. (2016). The Moral Economy: Why Good Incentives Are No Substitute for Good Citizens. New Haven: Yale University Press.
• Ostrom, E. (2006). Governare i beni collettivi. Venice: Marsilio (Italian translation of Governing the Commons).
• Nowak, M. A. (2012). SuperCooperators. New York: Free Press.

Inequality and Social Justice

• Atkinson, A. B. (2015). Disuguaglianza. Che cosa si può fare?. Milan: Raffaello Cortina.
• Wilkinson, R., & Pickett, K. (2010). La misura dell'anima. Perché le disuguaglianze rendono le società più infelici. Milan: Feltrinelli.
• Sandel, M. J. (2021). La tirannia del merito. Perché viviamo in una società di vincitori e di perdenti. Milan: Feltrinelli.

The Care Economy and Well-being

• Folbre, N. (2001). The Invisible Heart: Economics and Family Values. New York: The New Press.
• Nussbaum, M. C. (2012). Creare capacità. Liberarsi dalla dittatura del PIL. Bologna: Il Mulino.
• Tronto, J. C. (2013). Caring Democracy: Markets, Equality, and Justice. New York: NYU Press.

Public Policy and Behavioral Insights

• Sunstein, C. R. (2015). Scegliere non è manipolare. Le regole del nudging. Milan: Egea.
• World Bank. (2015). World Development Report 2015: Mind, Society, and Behavior. Washington, DC: World Bank.
• OECD. (2017). Behavioural Insights and Public Policy: Lessons from Around the World. Paris: OECD Publishing.

Lecture Notes

Lecture slides and notes will be made available on the IOL platform before each class. These materials may be revised or supplemented after the lecture to reflect classroom discussions and additional insights.

While the lecture notes provide a useful overview of the course content, they do not replace the assigned readings. They often lack the analytical depth and broader context provided by the reference literature, which are essential for a thorough understanding of the topics covered in the course.

Teaching methods

Teaching Methods

The course combines traditional lectures with interactive learning activities designed to encourage active student participation and the development of critical thinking skills. Lectures will alternate between the presentation of the main theoretical frameworks and the discussion of case studies, academic research articles, and applications to contemporary economic and social challenges.

Throughout the course, students may engage in individual or small-group activities, including the discussion of research papers, short in-class exercises, and case study analyses. These activities are intended to promote peer discussion and to help students apply the tools of behavioral economics to the analysis of cooperation, inequality, the care economy, and public policy.

Assessment methods

Assessment Methods

Assessment consists of a written multiple-choice examination followed by an oral examination, both covering the entire course syllabus.

The assessment is designed to evaluate whether students have achieved the intended learning outcomes of the course and, in particular, their:

• knowledge of the main concepts, models, and findings in behavioral economics and social preference theory;
• ability to understand and interpret economic and social phenomena using the tools of behavioral economics;
• ability to apply theoretical concepts to the analysis of topics such as cooperation, inequality, the care economy, and public policy;
• ability to use the appropriate disciplinary terminology and to critically discuss the topics covered during the course.

The written examination is primarily intended to assess students' knowledge of the course contents and their ability to apply theoretical concepts to simple examples and case studies.

The oral examination is primarily intended to assess students' critical understanding of the course topics, their ability to establish connections across different areas of the course, and their ability to present well-reasoned, clear, and rigorous arguments.

The written examination consists of 20 multiple-choice questions to be completed in 30 minutes. Questions are randomly selected from a question bank prepared by the instructor and cover the entire course syllabus. The written examination is designed to assess students' knowledge of the fundamental course content and their ability to apply theoretical concepts to simple examples and case studies.

Admission to the oral examination is conditional upon obtaining at least 12 correct answers out of 20 in the written examination.

The oral examination takes place on the same day, immediately after the written examination has been graded. Questions are randomly selected from a predefined pool of questions, which will be made available to students during the course. The oral examination aims to assess students' critical understanding of the topics covered, their ability to establish connections across different course themes, and their ability to discuss issues related to behavioral economics and public policy in a clear and rigorous manner.

The final grade is based on the overall performance in both the written and the oral examination.

During the written examination, students are not permitted to consult books, lecture notes, slides, teaching materials, online resources, or Artificial Intelligence tools. The examination is individual, and any unauthorized communication or dishonest behavior will result in immediate exclusion from the examination.

Assessment will take into account the accuracy of students' answers, their ability to use concepts from behavioral economics to interpret economic and social issues, as well as the clarity and quality of the arguments presented during the oral examination.

Grades are awarded according to the following criteria:

• Below 18: fail.
• 18–23: satisfactory knowledge of the main concepts and ability to describe the fundamental topics of the course.
• 24–27: good knowledge of the course topics, ability to apply concepts to simple problems, and ability to establish connections across different topics.
• 28–30: very good knowledge of the course topics, critical analytical skills, clear exposition, and mastery of the appropriate disciplinary terminology.
• 30 cum laude: outstanding performance, demonstrating excellent mastery of the course contents, the ability to integrate the different topics covered in the course, and to develop rigorous and independent arguments.

Grade rejection: students may reject the grade obtained in the examination only once. To do so, they must send a request by e-mail to the instructor before the registration deadline for the following examination session. The instructor will confirm receipt of the request as soon as possible. Rejecting a grade requires the student to retake the entire examination, including both the written and the oral components.

Students with specific learning disorders (SLD) and/or temporary or permanent disabilities are invited to contact the University office responsible for accessibility services as early as possible (https://site.unibo.it/studenti-con-disabilita-e-dsa/en ). Any requests for accommodations must be submitted to the instructor at least 15 days before the examination date.

The use of generative Artificial Intelligence tools is strictly prohibited during both the written and the oral examination. Any such use constitutes a violation of academic integrity.

Teaching tools

Lectures will combine traditional instruction with guided discussions of case studies, research articles, and current policy issues, with the aim of encouraging active participation and fostering students' critical thinking skills.

Throughout the course, students may engage in small-group activities, including the discussion of academic articles, case studies, or short presentations on topics agreed upon with the instructor. These activities are designed to deepen students' understanding of the course topics and to encourage discussion and peer learning.

Lecture slides, lecture notes, required readings, and all other course materials will be made available through the VIRTUALE platform (https://virtuale.unibo.it ). Students are expected to consult the platform regularly for course announcements, updates, and teaching materials.

Office hours

See the website of Natalia Montinari