Behavioural Insights for Business and Management

Module description

This module will provide an overview of the important insights from behavioural economics and apply to business, economics and management decision making context. It will teach students the core theory of behavioural economics, demonstrate how these can be applied to explain and inform the decisions made by stakeholders, workers, and consumers, and ultimately apply to business and policy-relevant issues. The module will focus on conceptual foundations (core assumptions and models), problem solving and applications.

Full module specification

Module title:Behavioural Insights for Business and Management
Module code:BEE3064
Module level:3
Academic year:2019/0
Module lecturers:
  • Dr Cecilia Chen - Convenor
Module credit:15
ECTS value:

7.5

Pre-requisites:

BEE2038 or BEE2024

Co-requisites:
Duration of module: Duration (weeks) - term 1:

1-11

Module aims

The module aims to develop understanding of behavioural models and the ability to apply those theories to real decision making scenarios. The aim of this module is to enable the students to examine economic theory from a behavioural perspective, gain insights and hopefully apply to various decision making contexts. Quantitative skills will be developed through a series of problem sets.  Critical thinking and communication skills will be developed in tutorials through group work and student presentations.

ILO: Module-specific skills

  • 1. explain and analyse the most important contributions of behavioural economics
  • 2. apply the insights from the behavioural economics to critically analysing and understanding many economic behaviours in firms, organizations, and markets
  • 3. understand projects reports and journal articles that used the concepts and methods introduced in the module

ILO: Discipline-specific skills

  • 4. apply economic theory in case studies
  • 5. evaluate the insights alternative theoretical models offer in case studies

ILO: Personal and key skills

  • 6. demonstrate problem solving skills
  • 7. demonstrate critical thinking and communication skills

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

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad
241260

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Scheduled Learning & Teaching activities20Lectures
Scheduled Learning and Teaching Activities4Tutorials
Guided independant study126

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Group Project Assessment Bi-weekly1,2,3,4,5,6,7Verbal

Summative assessment (% of credit)

CourseworkWritten examsPractical exams
5950

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Participation5Survey questions every/bi-weekly, 5-10mins per survey during class time1,2,3,4,5,6,7Written
Mid-Term Exam3060 mins1,2,3,4,5,6,7Written/verbal
January Exam6590 mins1,2,4,5,6,7Written

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

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
Mid – term exam and January examExam (95%) 2 hours1-7August reassessment period

Re-assessment notes

The student keeps the marks he/she obtains from the participation.

Syllabus plan

Selected topics in behavioural economics will be covered. For each topic, we begin with the standard model of rational decision making, and discuss what types of behaviours this model can explain. We then move on to examine evidence from experiments and conclude with alternatives models that are proposed to account for the behavioural “anomalies”.  The topics that we may cover (but not limited to) are as follows:

  • Decisions under risk and uncertainty
  • Temptation and self-control
  • Social preferences: fairness and reciprocity
  • Bounded rationality
  • Social norms and social approval

Indicative learning resources - Basic reading

Basic reading:

Thaler, Richard and Sunstein, Cass R.. (2009). Nudge. Improving Decisions about Health, Wealth and Happiness, Penguin Books

Thaler, Richard. 1992. The Winner’s Curse. Paradoxes and Anomalies of Everyday Life. A Russell Sage Foundation Book. The Free Press, NY.

Kahneman, Daniel. 2011. Thinking, Fast and Slow. Farrar, Straus and Giroux.

Just, D (2013) Introduction to Behavioral Economics (1st edition), Wiley

Other readings materials including journal articles: please refer to ELE module page.

Module has an active ELE page?

Yes

Indicative learning resources - Web based and electronic resources

FT.com

Origin date

09/03/2018

Last revision date

21/02/2019