Behavioural Economic Theory
| Code | School | Level | Credits | Semesters |
| ECON4032 | Economics | 4 | 15 | Spring UK |
- Code
- ECON4032
- School
- Economics
- Level
- 4
- Credits
- 15
- Semesters
- Spring UK
Summary
The module explores the psychological underpinnings of economic behaviour and of recent theories in behavioural economics. Topics covered include:
• Introduction to behavioural economics
• Choice and risk
• Reference-dependence and loss aversion
• Choice and time
• Social preferences I: inequality aversion
• Social preferences II: reciprocity and psychological games
• Models of strategic thinking.
Target Students
Available for PGT and PGR students in the School of Economics.
Classes
This module is delivered through a series of lectures.
Assessment
- 100% Exam (2-hour): Exam
Assessed by end of spring semester
Educational Aims
Specific module aims are:To acquaint students with the central elements of behavioural economic theory and of the psychological concepts and evidence which motivate itTo broaden students' knowledge of how psychological and experimental findings influence economic modelling, especially in relation to preferences and judgement in situations involving risk, time or interaction between agentsTo improve students' modelling skills and appreciation of how a psychological perspective may contribute to the understanding of economic phenomena.Learning Outcomes
By the end of this module, students should be better able to:
A2: Show an understanding of advanced theoretical methods (including graphical and mathematical representations of economic ideas).
A4: Show an advanced knowledge of specialisms in economics, specifically the current state of research in behavioural economics.
B1: Model the essential features of complex economic systems.
B2: Use analysis, deduction and induction to solve economic problems.
C4: Use different approaches – specifically those of behavioural economic theory - to analysing a given research question.