Behavioural Economics and Decision Making

Code	School	Level	Credits	Semesters
BUSI4417	Business	4	10	Spring UK

Code: BUSI4417
School: Business
Level: 4
Credits: 10
Semesters: Spring UK

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. 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

Only available for MSc Accounting and Finance OR MSc Business and Management OR MSc Industrial Engineering and Operations Management OR MSc Supply Chain and Operations Management students AND MSc Exchange students.

Classes

One 2-hour lecture each week for 11 weeks

Total Contact Hours = 22 (11 x 2 hours of Lectures); 48 hours of self-directed study; 30 hours exam revision, totalling 100 hours.

Assessment

100% In-Person Exam (2-hour): Final exam. Reassessment of this module will be 100% exam.

Assessed by end of spring semester

Educational Aims

• An understanding of behaviour in an economic context• An understanding of behavioural methods• Knowledge of theoretical models of behavioural economics• Knowledge of applicable behavioural tools• The ability to interpret results• Knowledge of how to design an experiment and collect data

Learning Outcomes

Knowledge and Understanding

• 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
Strategic risk management and issues of compliance

Intellectual Skills

•   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 Practice Skills

• 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
• Leadership and performance management: selecting appropriate leadership style for different situations; setting objectives, motivating, monitoring performance, coaching and mentoring.

Transferable (Key) Skills

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

Conveners

Dr Arjun Sengupta

View in Curriculum Catalogue

Last updated 07/01/2025.