Behaviour, Decisions and Markets
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.
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 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.
Students develop their critical thinking and writing skills in this module.
Full module specification
|Module title:||Behaviour, Decisions and Markets|
|Duration of module:||
Duration (weeks) - term 2: |
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 Activities||Guided independent study||Placement / study abroad|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|Scheduled learning and teaching activities||22||Lectures|
|Scheduled learning and teaching activities||5||Tutorials|
|Guided independent study||123||Reading, preparation for classes and assessment|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Class Discussions||1 hour||1-5||Verbal|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Written essay||50||2,000 words||1-4, 6-9||Verbal or written|
|ELE Quizzes||20||MCQ||1-4, 6-9||Verbal|
|Class Group Assignments||30||3x 10-20 minute presentations (live or pre-recorded)||1-9||Verbal|
Details of re-assessment (where required by referral or deferral)
|Original form of assessment||Form of re-assessment||ILOs re-assessed||Timescale for re-assessment|
|Written assignment (50%) + Class group assignments (30%)||Written assignment (80%) (2,000 words)||1-4, 6-9||August re-assessment period|
|ELE Quizzes (20%)||ELE Quizzes (20%)||1-4, 6-9||August re-assessment period|
- Rational Choice
- Risk Attitudes
- Prospect Theory / Mental Accounting
- Processing Information and Belief Formation
- Economics of Discrimination
- Incentives in Organisations and Behavior Change
Indicative learning resources - Basic reading
Dhami, S. (2016). The foundations of behavioral economic analysis. Oxford: Oxford University Press.
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Last revision date