This module will provide students with an introduction to the principles of Behavioural Economics, covering both core empirical findings and key theoretical concepts. Behavioural economics focuses on how individuals and institutions make decisions, incorporating insights into human behaviour from psychology, sociology, philosophy, and other fields to better understand economic decision making. Empirical research in behavioural economics focuses on observing human behaviour. We often make choices that are not rational or in our best interests. Decisions can be influenced by social norms, emotions, culture, cognitive biases, and habit. In addition to observing human behaviour, behavioural economists also conduct experiments to determine how individuals and policy makers can improve decision making. The module will cover classic experiments that give insights into how people make decisions.
Applications of behavioural economics to decision making in areas such as health, wealth, pro-environmental behaviours, and happiness will be discussed. The module will explore how behavioural economics can be used to improve decision making in these areas and consider the ethical implications of ‘nudging’ towards a particular choice.
On completing the module students will be able to explain key terms and theoretical concepts, and critically evaluate empirical evidence from behavioural research. Students will also understand how behavioural economics can inform public policy, and sustainable and ethical business practices.
- Introduction to Behavioural Economics
- Experiments and Evaluating Empirical Research
- Decision Making under Certainty and under Uncertainty
- Probability Theory, Heuristics, and Biases
- Prospect Theory, Reference Dependence, and Mental Accounting
- Social Preferences
- Nudging
- Sludge and Ethics
- Behavioural Economics and Wellbeing
Lectures will introduce the key concepts and empirical findings from behavioural economic research and provide the tools required to critically evaluate empirical research. Lectures will be interactive with group discussions, polls, and where possible replication of classic behavioural economics experiments.
Self-directed Learning: Students will be required to complete assigned readings in advance of lectures. Other materials such as short videos and blog posts may also be provided for revision purposes. Lecture slides, reading lists, and associated course materials will be posted on Brightspace. The Continuous Assessment will also facilitate independent learning and will comprise of an applied group project.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 70 |
| Other Assessment(s) | 30 |