MODULE SPECIFICATION TEMPLATE

MODULE DETAILS

Module title Behavioural Economics

Module code ECM16

Credit value 10

Level

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appropriate level with an ‘X’

Level 4 Level 5 Level 6 Level 7 x Level 8

Level 0 (for modules at foundation

level)

Entry criteria for registration on this module

Pre-requisites

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codes or equivalent

Co-requisite modules

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codes or equivalent

Module delivery

Mode of delivery Taught x Distance Placement Online

Other

Pattern of delivery Weekly Block x Other Guided study

When module is delivered Semester 1 Semester 2 Throughout year

Other Term 3

Brief description of module content and/ or aims

Overview (max 80 words)

Behavioural economics (BE) is an emerging subfield of economics that

incorporates insights from psychology and other social sciences into

economics. BE considers how the processes underlying decision-making

influence our actual decisions – rather than, as with neo-classical

economics, assuming away these processes to arrive at a flawed model of

rational decision-making. BE, which uses empirical and laboratory

evidence, is increasingly being used to inform practice in both the public

and private sectors – it is now being applied to commercial, policy and

behavioural challenges. This module sets out the key elements and gives

students the opportunity to apply BE to decision making – both their own,

and their clients. Content shown is indicative.

Module team/ author/

coordinator(s)

Stephen Young

School Business School

Site/ campus where

delivered

Moulsecoomb

Course(s) for which module is appropriate and status on that course

Course Status (mandatory/ compulsory/

optional)

All business school specialist Masters, MSc Commissioning for Health, Management Masters degrees

from the Health Faculty and all other similar Master’s

programmes, including Public Sector MBA

optional

MSc Marketing – all pathways optional

MODULE AIMS, ASSESSMENT AND SUPPORT

Aims To provide a theoretical and practical knowledge of behavioural economics, using published academic theory, experiments, case studies, examples and applications.

To enable students to evaluate and apply relevant techniques from behavioural economics to improve decision making in their chosen career, whether public or private sector.

To illustrate the contrast between the fundamental assumptions of neo-classical economic models versus the evidence that people often behave in ways that contradict such assumptions.

To develop an awareness of the theories, processes, issues, methods and vocabulary of behavioural economics, and to enable students to see the links with other disciplines.

To give students the ability to improve the realism of their economic analysis, by incorporating features from behavioural economics such as an aversion for losses, a problem with self-control, or a concern for others.

To critically analyse contemporary economic developments with a view to better understanding such phenomena as environmental challenges; problems in public health; and similar “wicked” problems.

Learning outcomes On completing the module, the student should be able to: Subject specific:

demonstrate a systematic and critical analysis of behavioural economics, from both a theoretical and an applied perspective

understand some of the main models, core insights and key controversies from behavioural economics.

consider how behavioural economics might apply to their own organisations and clients

Cognitive:

consider the role of behavioural economics as part of enhanced logical, critical and analytical skills.

understand how behavioural economics can be used as a tool to understand decision making

develop a broader perspective on the role of behavioural economics in problem solving

Content The module covers core concepts and techniques associated with behavioural economics, as well as considering how these theoretical constructs are being applied in the public and private sectors. Content includes:

Overview; homo economicus or homo sapiens?

Rational economics and irrational behaviour.

Judgement, heuristics and bias; bounded rationality; bounded self interest; bounded willpower; risk.

Now or later? Inter-temporal choice and hyperbolic discounts.

Too much information, too many choices: the curse of knowledge.

Altruism and fairness: reciprocity, punishment and just desserts.

Controversies: validity - lab rats and empirical actors; using data.

Learning support Behavioural economics is a new field of study and there are few standard textbooks. Key texts for this course are:

Ariely, Dan “Predictably Irrational,” Harper Collins

Kahneman, Daniel “Thinking Fast and Slow” Penguin

Schwartz, Barry “The Paradox of Choice”

Thaler, Richard H and Sunstein, Cass R “Nudge: Improving Decisions About Health, Wealth, and Happiness,” Penguin

Other sources:

Akerlof, George & Shiller, Robert “Animal Spirits” Princeton University Press

Braffman, Ori & Rom, “Sway: The Irresistible Pull Of Irrational Behaviour,” Virgin Books

Camerer, Colin., Loewenstein, George., Rabin, Matthew. ”Advances in Behavioral Economics” Princeton (NJ), Princeton University Press

Diamond, Peter & Varitanen, Hannu, (Eds) “Behavioral Economics and Its Applications” Princeton University Press

Erwann Michel-Kerjan & Slovic, Paul (Eds) The Irrational Economist: Making Decisions In A Dangerous World

Harford, Tim, “The Logic of Life,” London, Little Brown

Ferguson, Niall, “The Ascent of Money”, London, Allen Lane, (and linked DVD)

Kahneman, Daniel & Tversky, Amos “Choices, Values and Frames,” CUP

Kindleberger, Charles, "Manias, Panics And Crashes" Loewenstein, George, (Ed) “Exotic Preferences: Behavioral Economics and Human Motivation,” Oxford University Press

Lunn, Pete, “Basic Instincts: Human Nature & the New Economics,” Marshall Cavendish

Pomykala, Jo, Behavioural Economics: A Crash Course (website) http://www.altruists.org/static/files/A%20Page%20on%20Behavioural%20Economics.htm

Sutherland, Stuart, “Irrationality,” London, Pinter & Martin

Ubell, Peter “Free Market Madness: Why Human Nature is at Odds With Economics, And Why It Matters” (Harvard Business Press)

Wilkinson, Nick, & Klaus, Matthias “An Introduction to Behavioural Economics. 2nd Edition” Palgrave Macmillan

Journals

Numerous articles from economic journals (references to be provided)

Journal of Behavioural Decision Making http://www3.interscience.wiley.com/journal/117881858/issue

Journal of Economic Psychology http://www.sciencedirect.com.ezproxy.brighton.ac.uk/science/journal/01674870

Journal of Risk and Uncertainty http://www.springer.com/economics/economic+theory/journal/11166 General

FT/broadsheet press

The Economist

Teaching and learning activities

Details of teaching and

learning activities

The teaching and learning strategies for this module will require students to develop advanced knowledge and the critical application of theory to practice. This will be achieved via student’s independent research, guided by the class sessions and workshops. Students will be expected to actively participate in knowledge-sharing via participation in these sessions. The module will be assessed with an individual 2,250 - 2,500 word

paper (100% weighting).

Allocation of study hours (indicative) Where 10 credits = 100 learning hours

Study hours

SCHEDULED

This is an indication of the number of hours students

can expect to spend in scheduled teaching activities

including lectures, seminars, tutorials, project

supervision, demonstrations, practical classes and

workshops, supervised time in workshops/ studios,

fieldwork, external visits, and work-based learning.

15

GUIDED INDEPENDENT STUDY

All students are expected to undertake guided

independent study which includes wider reading/

practice, follow-up work, the completion of assessment

tasks, and revisions.

85

PLACEMENT

The placement is a specific type of learning away from the University that is not work-based learning or a year abroad.

TOTAL STUDY HOURS 100

Assessment tasks

Details of assessment for

this module

An individual 2,250 - 2,500 word paper (100% weighting).

Types of assessment task1

Indicative list of summative assessment tasks which lead to the award of credit or

which are required for progression.

% weighting

(or indicate if

component is

pass/fail)

WRITTEN

Written exam

COURSEWORK

Written assignment. 100%

PRACTICAL

Oral assessment and presentation, practical skills

assessment, set exercise

EXAMINATION INFORMATION

Area examination board

Refer to Faculty Office for guidance in completing the following sections

External examiners

Name Position and institution Date appointed Date tenure

ends

Dr Ruth Marciniak Glasgow Caledonian University 18/04/2016 31/12/2019

QUALITY ASSURANCE

Date of first approval Only complete where this is

not the first version

1/5/2010 (20 credit version)

Date of last revision

Only complete where this is

not the first version

17/5/2010, 10 credit version approved March 2014

Date of approval for this

version

January 2017 editorial, external examiner

Version number 2.1

Modules replaced

Specify codes of modules for

which this is a replacement

Available as free-standing module? Yes No x

1 Set exercises, which assess the application of knowledge or analytical, problem-solving or evaluative skills, are included

under the type of assessment most appropriate to the particular task.