23005 Behavioural Economics
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particular session, location and mode of offering is the authoritative source
of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.
Subject handbook information prior to 2024 is available in the Archives.
Credit points: 6 cp
Subject level:
Undergraduate
Result type: Grade and marksRequisite(s): (23567 Intermediate Microeconomics AND (23506 Strategic Decision Making and Game Theory OR 23592 Game Theory)) OR ((72 credit points of completed study in spk(s): C10026 Bachelor of Business OR 72 credit points of completed study in spk(s): C10235 Bachelor of Accounting OR 144 credit points of completed study in spk(s): C09070 Bachelor of Engineering (Honours) Bachelor of Business OR 144 credit points of completed study in spk(s): C09071 Bachelor of Engineering (Honours) Bachelor of Business Diploma Professional Engineering Practice OR 144 credit points of completed study in spk(s): C09084 Bachelor of Business Bachelor of Laws (Honours) OR 144 credit points of completed study in spk(s): C09133 Bachelor of Business Bachelor of International Studies (Honours) OR 144 credit points of completed study in spk(s): C10020 Bachelor of Business Bachelor of International Studies OR 144 credit points of completed study in spk(s): C10125 Bachelor of Business Bachelor of Laws OR 144 credit points of completed study in spk(s): C10162 Bachelor of Science Bachelor of Business OR 144 credit points of completed study in spk(s): C10163 Bachelor of Medical Science Bachelor of Business OR 144 credit points of completed study in spk(s): C10278 Bachelor of Information Systems Bachelor of Business OR 144 credit points of completed study in spk(s): C10326 Bachelor of Business Bachelor of Creative Intelligence and Innovation OR 144 credit points of completed study in spk(s): C10411 Bachelor of Business Bachelor of Sustainability and Environment OR 144 credit points of completed study in spk(s): C10416 Bachelor of Business Bachelor of Languages and Cultures OR 144 credit points of completed study in spk(s): C10449 Bachelor of Business Master of Teaching Secondary Education OR 144 credit points of completed study in spk(s): C10169 Bachelor of Molecular Biotechnology Bachelor of Business OR 144 credit points of completed study in spk(s): C10219 Bachelor of Information Technology Bachelor of Business))
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.
Note
It is highly recommended that 23567 Intermediate Microeconomics and (23506 Strategic Decision Making and Game Theory OR 23592 Game Theory) should be completed before undertaking this subject.
Description
The field of psychology and economics – or behavioural economics – takes the methodology of economic theory beyond the standard assumptions of rationality and self-interest. The goal is to develop models that more accurately describe and predict economic phenomena. The guiding principle is to select modelling assumptions on the basis of psychological realism rather than mathematical or normative convenience. This subject is an introduction to the field. The goals of the subject are to explore more thoroughly the assumptions, implications, and failures of several fundamental standard economic models, to develop alternative, behavioural models based on findings from psychology, and to explore the implications of the new models. The subject develops a better understanding of standard economic theory, a richer appreciation for the way that economists think, and an interesting set of insights about the ways that human psychology affects economic decision-making.
Subject learning objectives (SLOs)
| 1. | Apply behavioural economic concepts to everyday economic problems |
|---|---|
| 2. | Explain the consequences of introducing more realistic psychological assumptions into economic models |
| 3. | Understand the role of experimental evidence in behavioural economics |
Contribution to the development of graduate attributes
The subject introduces students to a new and rapidly expanding area of economics and provides students with an understanding of important concepts from both psychology and economic theory. The subject material addresses current policies and economic issues, such as consumption of addictive goods, charitable donations and retirement savings plans.
Teaching and learning strategies
A combination of lectures, tutorials and self-managed learning materials from the web are used to develop advanced skills in microeconomic analysis. Real world examples and policy problems are used to illustrate economic techniques and the relevance of behavioral economics for society.
Content (topics)
- Reference-dependent preferences
- Risk preferences and Prospect Theory
- Time preferences
- Biases in probability judgment
- Behavioural game theory
- Social preferences
- Applications to consumer, citizen, government and business decision-making
Assessment
Assessment task 1: Assignment (Individual)
| Objective(s): | This addresses subject learning objective(s): 1, 2 and 3 |
|---|---|
| Weight: | 60% |
| Criteria: |
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Assessment task 2: Final Examination (Individual)
| Objective(s): | This addresses subject learning objective(s): 1, 2 and 3 |
|---|---|
| Weight: | 40% |
| Criteria: |
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Minimum requirements
Students must achieve at least 50% of the subject’s total marks.
Recommended texts
A Course in Behavioural Economics (3rd edition) by Erik Angner (Hard copies of earlier editions are available in the UTS library.)