EC345: Behavioural Economics: Theory and Applications
Jo Turrall
Module Leader
Introduction
EC345-15 Behavioural Economics: Theory and ApplicationsPrincipal Aims
The module aims to develop students' knowledge and understanding of economic decision making by emphasising how psychological and experimental findings (from the field and laboratory) have shaped contemporary economic models. In particular the students will learn about recent theoretical developments modelling consumer behaviour, especially in relation to preferences and judgements in situations involving risk, uncertainty and time. The module will also broaden students' knowledge of the way models and theories are empirically or experimentally tested. In this respect students will be acquainted with key empirical results from the field of behavioural economics
Principal Learning Outcomes
Key Skills: Demonstrate knowledge and understanding of core theoretical concepts in behavioural economics, and develop the ability to read, interpret, and synthesise empirical research across a range of behavioural domains. Students will practise communicating this knowledge through clear, well-structured essay-style writing, including the ability to explain complex economic ideas clearly and accessibly to a non-technical audience
Subject knowledge and understanding:Demonstrate understanding of the rationale, key theoretical frameworks, and empirical tools of behavioural economics, and apply them to analyse economic decision-making in individual, social, and policy contexts.
Professional Skills: Understand contemporary behavioural economic models and empirical approaches that are increasingly used by practitioners in government, policy institutions, and the private sector, including applications to welfare analysis, wellbeing measurement, and strategic interaction. Develop the ability to assess the relevance and limitations of behavioural insights in applied economic and policy contexts.
Syllabus
The syllabus will cover the theoretical foundations and applications of Behavioural Economics, focusing on how psychological, cognitive, and social factors influence economic decision making. Topics include decision making under uncertainty, intertemporal choice, non standard decision making, happiness economics, behavioural game theory, social preferences, and neuroeconomics.
The module examines how behavioural models explain choices in different domains and how these differ from the predictions of standard economic models. It also explores empirical applications of behavioural economics, with a particular focus on individual decision making across different economic and social contexts.
The course places emphasis on the empirical identification and evaluation of behavioural models using evidence from experimental and applied research. However, it does not require advanced econometric knowledge.
Context
- Optional Module
- L100 - Year 3, L103 - Year 4, L116 - Year 3, L117 - Year 4, LM1D (LLD2) - Year 3, LM1H - Year 4, GL11 - Year 3, GL12 - Year 4, V7ML - Year 3, V7MM - Year 4, V7MP - Year 3, V7MR - Year 3, LA99 - Year 3, R9L1 - Year 4, R3L4 - Year 4, R4L1 - Year 4, R2L4 - Year 4, R1L4 - Year 4, L1L8 - Year 3, L1CA - Year 3, L1CB - Year 4
- Pre or Co-requisites
EC202-30 Microeconomics 2 OR
EC204-30 Economics 2 OR
EC238-15 Economics 2: Microeconomics
Summary:Modules: EC202-30 or EC204-30 or EC238-15
Assessment
- Assessment Method
- Coursework (20%) + Centrally-timetabled examination (On-campus) (80%)
- Coursework Details
- Centrally-timetabled examination (On-campus) (80%) , in-class test (20%)
- Exam Timing
- Summer