Behaviour, Decisions and Markets

Module description

Summary:

If you want to predict the outcome of an election, whose advice should you take: the pundits’ or the market? What are the motivations that lie behind our decision to give to charity? To what extent are our decisions influenced by context? The aim of this module is to enable you to examine economic theory from a behavioural perspective, and highlight instances where standard economics predicts actual choices correctly and instances where it does not. You will be introduced to recent behavioural theories that have emerged to explain the empirical observations, and will discuss the implications for economics, business and politics. While focusing on the main developments in behavioural economics, the module aims to expose you to the methodology of experimental economics and how it can be used to empirically test economic theory.

Additional Information:

Internationalisation
This module looks at the fundamentals of behaviour to understand issues like financial crisis and irrationality in markets, so it is applicable to an international environment.

Sustainability
Sustainability is explored in relation to topics of economic sustainability, cooperation in order to maintain the common public good and the necessary conditions to achieve success.

Employability
Students develop their critical thinking and writing skills in this module.

Full module specification

Module title:Behaviour, Decisions and Markets
Module code:BEE3049
Module level:3
Academic year:2016/7
Module lecturers:
  • Professor Miguel Fonseca - Convenor
Module credit:15
ECTS value:

7.5

Pre-requisites:

BEE1030 Microeconomics

Co-requisites:

None

Duration of module: Duration (weeks) - term 2:

11

Module aims

The aim of this module is to enable students to examine economic theory from a behavioural perspective, and highlight instances where standard economics predicts actual choices correctly and instances where it does not. Students will be introduced to recent behavioural theories that have emerged to explain the empirical observations, and will discuss the implications for economics, business and politics. While focusing on the main developments in behavioural economics, the module aims to expose students to the methodology of experimental economics and how it can be used to empirically test economic theory.

ILO: Module-specific skills

  • 1. be familiar with the methodology of and recent developments in experimental economics and their impact on economic theories
  • 2. understand how economics experiments are designed

ILO: Discipline-specific skills

  • 3. discuss and evaluate how economic theories are developed and tested
  • 4. understand how new theories are developed to account for new empirical evidence.

ILO: Personal and key skills

  • 5. participate in group work
  • 6. produce high quality work (whether in a group or individually) in written form
  • 7. engage in independent study
  • 8. research and summarise a body of literature in order to produce a report
  • 9. engage in critical thought and reasoned discussion

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad
271230

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Contact hours22Lectures
5Tutorials

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Participating in experiment (typical group size: 4 students)1 hour1-5Verbal

Summative assessment (% of credit)

CourseworkWritten examsPractical exams
25750

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Written essay251,500 words1-6, 8, 9Verbal or written
Exam752 hours1-4, 6-9Verbal
0
0
0
0

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
Exam and EssayExam (100%) 2 hours 1-4, 6-9Augus re-assessment period

Syllabus plan

• Rational Choice
• Learning
• Framing Effects
• Group Decision-Making
• Social Identity • Bargaining and Fairness
• Market Experiments
• Behavioural Game Theory I: Coordination
• Behavioural Game Theory II: Cooperation
• Behavioural Game Theory III: Sequential Decision-Making

Indicative learning resources - Basic reading

Basic reading:
Holt, C.A (2006) Markets, Games and Strategic Behavior, London: Pearson / Addison Wesley
Kahneman,D and Tversky, A. (2000) Choices, Values, and Frames Cambridge: Cambridge University Press

Module has an active ELE page?

Yes

Origin date

01/09/2008

Last revision date

01/02/2013