Based on the foundations of rational expectations theory, we will analyze deviations from its predictions at the individual level (e.g. information aggregation). As an application, we will focus on individuals' retirement savings decisions (defined contribution: 401k -- opt-in, contribution level, allocation). Then, the impact of individual (biased) behavior on markets and decisions within a firm are discussed.

In this course you will be exposed to various published and unpublished research papers mostly dealing with laboratory and field experiments but also some empirical papers.

This course will be taught in English. The questions in the final exam will be in English, too. Answers may be given either in English or in German.