23713 Behavioural Economics and Corporate Decision Making
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Subject handbook information prior to 2025 is available in the Archives.
Credit points: 3 cp
Result type: Grade and marks
Requisite(s): 23710 Behavioural Decision Making AND 23711 Behavioural Game Theory
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.
Description
This subject introduces students with insights from Behavioural Economics to understand dynamics within corporations, for instance, how decisions are made within large firms and what pitfalls may exist in organisations’ decision making processes. It will also present students with evidence about how real markets function when these markets results of the actions of consumers, managers and investors as modelled by behavioural economics.
Subject learning objectives (SLOs)
| 1. | analyse and discuss the role of behavioural biases in corporate decision making |
|---|---|
| 2. | apply behavioural economics tools to help to achieve unbiased managerial and corporate decision making |
Contribution to the development of graduate attributes
This subject equips students with insights from behavioural economics to explain the drivers of decisions made by managers and corporations. Students will learn about the pitfalls of decision making in corporations and learn how to work more effectively with colleagues. The subject will look at the many challenges managers face to make good decisions and how their attitudes influence the outcome of their firm. Such an understanding is of critical importance to graduates who will work in the industry when assessing corporate decisions.
This subject contributes to developing the following graduate attribute(s):
- Intellectual rigour and innovative problem solving
- Communication and collaboration
- Social responsibility and cultural awareness
- Professional and technical competence
Teaching and learning strategies
This subject is taught through a blend of online resources, self-directed study and seminars. Subject content will be presented to students in a variety of formats (lecture slides, notes, videos, articles) and delivered both online and in-class. At the beginning of the unit, students are expected to review materials and complete tasks on their own before attending a weekly Zoom review session with the lecturer. Materials will be provided to students on the teaching management system, but students are also expected to seek information independently. At the end of the unit, seminars offer face to face interaction to review the material and engage students with the material. Seminars are highly interactive. Students will learn about behavioural economics concept and methods and apply these to solve problems and case studies in-class, either individually or in small groups. Students will receive individual feedback in-class from the lecturer.
Content (topics)
- Overconfidence and optimism
- Investor behaviour
- Social forces
- Equity premium puzzle
Assessment
Assessment task 1: Online Quiz (Individual)*
| Objective(s): | This addresses subject learning objective(s): 1 |
|---|---|
| Weight: | 40% |
| Criteria: |
*Note: Late submission of the assessment task will not be marked and awarded a mark of zero. |
Assessment task 2: Case study (Group)
| Objective(s): | This addresses subject learning objective(s): 1 and 2 |
|---|---|
| Weight: | 60% |
| Criteria: |
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Minimum requirements
Students must achieve at least 50% of the subject’s total marks.