Behavioural Economics and Decision Making

Code

BUSI4506

School

Nottingham University Business School

Level

4

Credits

10

Semesters

Spring Malaysia

Summary

This module is aimed at giving students an understanding of behaviour in an economic context. You will learn the use of methods to measure economic preferences as: trust, risk, cooperation, social preferences and social identity. These measures are used in economics and finance to explain human behaviour and decision-making processes. In addition to this you will “play” games in the classroom to get a first hand impression of the structure and meaning of the games used in the lectures. Together we will understand how rational behaviour predictions conflict with human “bounded rational” decision making. The module is split into two parts. The first part focuses upon the methods and models associated with behaviour. These sessions will introduce key concepts in bounded rational behaviour and apply these to specific economics models and financial markets.

The second part of the module concentrates on designing your own experiment and interpreting empirical results. You will analyse studies of bounded rational behaviour, labour markets, asset markets, experimental behavioural finance, social dilemmas, preferences, public goods, reciprocity, bargaining and contests.

Target Students

Optional course for MSc Finance and Investment and MSc Business and Management.

Classes

• One 2-hour lecture each week for 11 weeks

Assessment

• 100% Exam 1 (2-hour): 2-hour Examination

Educational Aims

Learning Outcomes

Knowledge and understanding
This module develops a knowledge and understanding of:

The dynamics of the global economy and international business &/or an awareness of cultural, legal/regulatory, political, and economic differences across countries &/or an appreciation of management issues from a global perspective.
 

Markets - the development and operation of markets for resources, goods and services
 

People – strategic  and operational HRM, meeting future organisational requirements, people development, HR systems
 

The management of operations
 

The management of projects
 

Information systems and business intelligence - the development, management, application and implementation of information systems and their impact upon organisations
 

Tools and techniques for transforming (big) data into useful information for business analysis and decision support
 

Communications – the comprehension and use of relevant communications for application in business and management, including the use of digital tools
 

Business innovation – creativity, intrapreneurial – and entrepreneurial behaviour and enterprise development, and the management and exploitation of intellectual property 
 

The importance of sustainability issues, including an understanding of the challenges and opportunities arising from the activities of people and organisations on the economic, social and environmental conditions of the future.
 

Leadership and management of people within organisations – leadership, organisational behaviour and motivation
 

Strategic management - the development and implementation of appropriate strategies within a changing environment
 

Strategic risk management and issues of compliance
 

Intellectual skills
This module develops:

Being able to think critically and be creative: manage the creative processes in self and others; organise thoughts, analyse, synthesise and critically appraise. This includes the capability to identify assumptions, evaluate statements in terms of evidence, detect false logic or reasoning, identify implicit values, define terms adequately and generalise appropriately
 

Being able to solve complex problems and make decisions: establish criteria, using appropriate decision-making techniques including identifying, formulating and solving business problems; and the ability to create, identify and evaluate options; the ability to implement and review decisions
 

Using information and knowledge effectively in order to abstract meaning from information and to share knowledge, including the use of quantitative skills
 

Professional practical skills
This module develops:

The ability to conduct research and enquiry into business and management issues either individually or as part of a team through research design, the collection and analysis of qualitative data, synthesis and reporting
 

The ability to conduct research and enquiry into business and management issues either individually or as part of a team through research design, the collection and analysis of quantitative data, synthesis and reporting
 

Effective performance within team environments and the ability to recognise and utilise individuals' contributions in group processes and to negotiate and persuade or influence others; team selection, delegation, development and management.  Leadership and performance management: selecting appropriate leadership style for different situations; setting objectives, motivating, monitoring performance, coaching and mentoring
 

The ability to recognise the need for and initiate change and to be able to manage change
 

The ability to recognise and address ethical dilemmas, corporate social responsibility and sustainability issues, applying ethical and organisational values to situations and choices
 

Transferable (key) skills
This module develops:

Effective communication: networking, listening, oral and written communication of complex ideas and arguments, using a range of media, including the preparation of business reports
 

High personal effectiveness: critical self-awareness, self-reflection and self-management; time management; conflict resolution, displaying commercial acumen, the ability to continue to learn through reflection on practice and experience
 

Soft skills: understanding the needs of others and empathy towards them; sensitivity to diversity in people and in different situations

Conveners

• Dr Tan Chee Meng