Module

Behaviour, Decisions and Markets

Module description

Summary:

 

Why do people who gamble buy insurance? To what extent are our decisions influenced by context? Are incentives always good? The aim of this module is to enable you to examine economic theory from a behavioural perspective and to 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 also 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:2020/1
Module lecturers:
  • Professor Miguel Fonseca - Convenor
Module credit:15
ECTS value:

7.5

Pre-requisites:

BEE2025

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. Explain the methodology of and recent developments in experimental economics and their impact on economic theories
  • 2. Explain how economics experiments are designed

ILO: Discipline-specific skills

  • 3. discuss and evaluate how economic theories are developed and tested
  • 4. Explain and discuss 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
Scheduled learning and teaching activities22Lectures
Scheduled learning and teaching activities5Tutorials
Guided independent study123Reading, preparation for classes and assessment

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Class Discussions1 hour1-5Verbal

Summative assessment (% of credit)

CourseworkWritten examsPractical exams
50500

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Written essay502,000 words1-4, 6-9Verbal or written
ELE Quizzes20MCQ1-4, 6-9Verbal
Class Group Assignments303x 10-20 minute presentations (live or pre-recorded)1-9Verbal
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
Written assignment (50%) + Class group assignments (30%)Written assignment (80%) (2,000 words)1-4, 6-9August re-assessment period
ELE Quizzes (20%)ELE Quizzes (20%)1-4, 6-9August re-assessment period

Syllabus plan

  • Rational Choice
  • Risk Attitudes
  • Prospect Theory / Mental Accounting
  • Processing Information and Belief Formation
  • Economics of Discrimination
  • Nudge
  • Incentives in Organisations and Behavior Change

Indicative learning resources - Basic reading

Dhami, S. (2016). The foundations of behavioral economic analysis. Oxford: Oxford University Press.

Module has an active ELE page?

Yes

Origin date

01/09/2008

Last revision date

08/09/2020