The course Consumer Behaviour examines how consumers make decisions in real-world markets. It emphasises the connection between core concepts of microeconomic theory — such as preferences, utility, income, prices, demand and elasticities — and everyday as well as contemporary issues in consumer behaviour. The course uses consumer theory as a tool for understanding real-world decisions: how demand is affected by changes in prices and income, how the cost of living is measured, how consumption patterns differ across households, and how quality, information and time shape consumer choices. At the same time, the course selectively introduces key concepts from behavioural economics — such as bounded rationality, choice framing, loss aversion, present bias, mental accounting and behavioural interventions — and applies them to consumer markets, consumer protection policies and digital platforms. Particular emphasis is placed on applications related to the Consumer Price Index, the cost of living, Household Budget Surveys, equivalence scales, product quality, information, advertising, social consumption, online reviews, recommender algorithms, personalised pricing and deceptive design patterns in digital markets.

The purpose of the course is to help students understand consumer behaviour as an applied field of economics. Students will learn how consumer decisions are shaped by prices, income, preferences, quality, information, time, uncertainty, social influences and cognitive limitations. The course connects theory with real economic issues, such as inflation, the cost of living, inequality, poverty, household consumption expenditure, taxation, public policy, consumer protection and digital markets.

Upon successful completion of the course, students will be able to:

• explain the relationship between preferences, income, prices and demand;
• analyse basic consumer choices using the budget constraint and the concept of utility;
• interpret individual and market demand, elasticities and consumer surplus;
• distinguish, at an introductory level, between the income effect and the substitution effect;
• understand the logic behind the construction of the Consumer Price Index and its connection with the cost of living;
• recognise the role of quality, information and product differentiation in consumer choices;
• use basic concepts from Household Budget Surveys and equivalence scales to analyse consumption, poverty and inequality;
• analyse choices related to time allocation, household production, saving, borrowing and uncertainty;
• identify basic behavioural deviations from full rationality;
• explain social influences on consumption, such as conspicuous goods/Veblen goods, the bandwagon effect, the snob effect and the influence of social networks;
• evaluate policies based on nudging, choice architecture and consumer protection;
• interpret the role of digital platforms, online reviews, algorithms, personalised pricing and deceptive design patterns in digital markets in shaping consumer behaviour.

1. Introduction to Consumer Behaviour
2. Preferences, Utility and the Budget Constraint
3. Demand, Elasticities and Consumer Surplus
4. Changes in Prices and Income
5. Consumer Price Index and Cost of Living
6. Product Quality, Product Characteristics and the Price–Quality Relationship
7. Consumer Expenditure and Households
8. Time, Household Production and Saving
9. Information, Advertising and Consumer Decisions
10. Behavioral Economics and Imperfect Rationality
11. Social Consumption and Social Influences
12. Nudging, Consumer Protection and Public Policy
13. Digital Platforms and Contemporary Consumer Markets

Lectures (3 hours/week)

Student assessment is based on performance in the final written examination, which accounts for 60% of the final grade, and on an individual assignment completed during the semester, which accounts for 40% of the final grade.

The final written examination includes multiple-choice questions, short comprehension questions and/or simple numerical applications related to the content of the course.

The individual assignment involves applied analysis of a topic related to consumer behaviour, such as:

• inflation and the cost of living;
• household consumption expenditure;
• equivalence scales;
• the price–quality relationship;
• advertising and information;
• social influences on consumption;
• nudging and consumer protection;
• digital platforms;
• online reviews;
• personalised pricing;
• deceptive design patterns and digital manipulation of consumer choices.

Assessment criteria include understanding of the relevant theory, quality of documentation, analytical depth and clarity of presentation.

Support of the learning process through the e-class platform. Use of ICT in teaching.