BEHAVIOURAL ECONOMICS - 2020/1
Module code: ECO3052
In light of the Covid-19 pandemic, and in a departure from previous academic years and previously published information, the University has had to change the delivery (and in some cases the content) of its programmes, together with certain University services and facilities for the academic year 2020/21.
These changes include the implementation of a hybrid teaching approach during 2020/21. Detailed information on all changes is available at: https://www.surrey.ac.uk/coronavirus/course-changes. This webpage sets out information relating to general University changes, and will also direct you to consider additional specific information relating to your chosen programme.
Prior to registering online, you must read this general information and all relevant additional programme specific information. By completing online registration, you acknowledge that you have read such content, and accept all such changes.
Module Overview
This module introduces students to the field of behavioural economics which incorporates psychological evidence into economics. The canonical approach in economics explains market outcomes and economic decision-making using theoretical models which usually assume that people are fully rational. Behavioural economics, on the other hand, studies how people actually make decisions, by considering a number of real life decision making situations where some standard rationality assumptions on preferences do not hold. This module will present these departures by using empirical and experimental findings, as well as formalising theoretically their common pattern.
Module provider
Economics
Module Leader
BOZBAY Irem (Economics)
Number of Credits: 15
ECTS Credits: 7.5
Framework: FHEQ Level 6
JACs code: L110
Module cap (Maximum number of students): N/A
Module Availability
Semester 1
Prerequisites / Co-requisites
None
Module content
Indicative content includes:
- Rationality and Expected utility theory
- Prospect theory and Reference-dependent preferences
- Hyperbolic discounting
- Other regarding preferences
Assessment pattern
| Assessment type | Unit of assessment | Weighting |
|---|---|---|
| School-timetabled exam/test | In-Semester Test | 30 |
| Examination | 2 hour Examination | 70 |
Alternative Assessment
N/A
Assessment Strategy
The assessment strategy is designed to provide students with the opportunity to demonstrate
- Knowledge of the main empirical and experimental findings in behavioural economics;
- Ability to apply the knowledge of core concepts from behavioural economics to new problems;
- Ability to apply technical skills introduced in the module;
Thus, the summative assessment for this module consists of:
- A class test (worth 30% of the overall mark)
- A final exam (worth 70% of the overall mark)
Formative assessment and Feedback
Students receive verbal feedback during lectures (in which questions and real-world examples in economics are both attempted and discussed). Feedback to assessments will be given during lectures and students will be provided feedback documents which summarise commonly made mistakes in the assessments. For the course work and the exam, sample questions are made available for students so that they can familiarise themselves with the setup.
Module aims
- provide a broad overview of important results from behavioural economics;
- combine and compare canonical topics in economics (such as expected utility theory, rationality of preferences) with observed psychological regularities;
- formalise departures from the assumptions made in the canonical economic models by examining empirical and experimental evidence.
- develop an understanding of how people make decisions.
Learning outcomes
| Attributes Developed | ||
|---|---|---|
| 001 | On successful completion of this module, students will be able to demonstrate a broad knowledge of the important theoretical and empirical results of behavioural economics; | KCP |
| 002 | Analyse and interpret the main empirical and experimental findings in behavioural economics | KCPT |
| 003 | Apply core concepts from behavioural economics to generate new insights in different decision making settings | KCT |
| 004 | Be able to solve mathematical problems under these conditions | KCT |
| 005 | Be able to graphically and intuitively explain the theory they learn | CPT |
Attributes Developed
C - Cognitive/analytical
K - Subject knowledge
T - Transferable skills
P - Professional/Practical skills
Overall student workload
Independent Study Hours: 128
Lecture Hours: 22
Methods of Teaching / Learning
The learning and teaching strategy is designed to:
- enhance understanding and intuition of behavioural economics;
- enhance ability to identify and examine evidence of departure from the assumptions made in the canonical economic model;
- help students understand how these departures can be formalised theoretically and be tested empirically.
- enhance skills in applying mathematical methods to behavioural economics
- enhance reasoning about decision making in daily life.
The learning and teaching methods include:
- 2-hour lecture per week x 11 weeks
Indicated Lecture Hours (which may also include seminars, tutorials, workshops and other contact time) are approximate and may include in-class tests where one or more of these are an assessment on the module. In-class tests are scheduled/organised separately to taught content and will be published on to student personal timetables, where they apply to taken modules, as soon as they are finalised by central administration. This will usually be after the initial publication of the teaching timetable for the relevant semester.
Reading list
Reading list for BEHAVIOURAL ECONOMICS : http://aspire.surrey.ac.uk/modules/eco3052
Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2020/1 academic year.