ECM653-Applied Behavioural Economics

Module Provider: School of Politics, Economics and International Relations
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2023/4

Module Convenor: Dr Anwesha Mukherjee
Email: anwesha.mukherjee@reading.ac.uk

Type of module:

Summary module description:

This module applies insights from psychology to a range of economic problems. Students will learn how rich behavioural motives are expressed in economic models, how the predictions of those models can be tested, and their implications for policy and organisational design. The module also introduces students to the practical tools needed to be behavioural economists.

Aims:

The aims of this module are to:

• explain the rationale for having behavioural economics as a separate branch of economics


• illustrate how the key principles assumptions that underlie of behavioural economics can improve understanding regarding regarding the manner in which economic decisions are made at individual and institutional levels;


• illustrate and evaluate the evidence for these principles assumptions,;


• introduce models of decision making which embed these principles and how these models can inform policy making, assumptions and can make predictions in novel policy domains;


• enable students to apply behavioural economic interventions and assess their effects.

Assessable learning outcomes:

At the end of this module, students should be able to:

1. explain how canonical psychological theories are embodied in behavioural economic models;


2. explain how the assumptions which underpin behavioural economic models generate their predictions;


3. analyse and interpret experimental results.

Additional outcomes:

This module will also enable students to apply the key insights of the module to a broad range of economic decision-making in real-world situations.

Outline content:

Topics may include:include: ÌýÌýdecision under uncertainty and applications to financial decisions; altruism, fairness & trust considerations; conflict;Ìýidentity and political choice economy;Ìýsocial norms & herding;Ìýreference dependence in labour markets and organisations; the implications of social comparisons.

Global context:

Examples of the contexts and problems where the methods introduced by this module can be applied will reflect the University’s commitment to global engagement and multi-cultural awareness.

The module content itself also takes seriously the idea that people’s identity – their sense of belonging to an ingroup and differentiation with respect to an out-group – is valuable to them. Viewing e.g. occupational choice through this framework creates a different narrative about why disparities between genders or ethnic groups persist.

Brief description of teaching and learning methods:

This module is delivered through a combination of lectures and discussions of research papers. Lectures will introduce the core theoretical concepts, their applications, and sketch existing empirical evidence. Students will additionally learn how to design an experiment and analyse and apply the results to real-world situations.

Contact hours:

Ìý	Autumn	Spring	Summer
Lectures		20
Seminars		2
Guided independent study:	Ìý	Ìý	Ìý
Ìý Ìý Wider reading (directed)		140
Ìý Ìý Revision and preparation		18
Ìý Ìý Essay preparation			20
Ìý	Ìý	Ìý	Ìý
Total hours by term	0	180	20
Ìý	Ìý	Ìý	Ìý
Total hours for module	200

Summative Assessment Methods:

Method	Percentage
Written assignment including essay	50
Class test administered by School	50

Summative assessment- Examinations:

There is no examination for this module.

Summative assessment- Coursework and in-class tests:

Assessment is comprised of a class test (50%) and an essay assignment (50%).

Formative assessment methods:

Penalties for late submission:

The below information applies to students on taught programmes except those on Postgraduate Flexible programmes. Penalties for late submission, and the associated procedures, which apply to Postgraduate Flexible programmes are specified in the policy 'Penalties for late submission for Postgraduate Flexible programmes', which can be found here: /cqsd/-/media/project/functions/cqsd/documents/cqsd-old-site-documents/penaltiesforlatesubmissionpgflexible.pdf
The Support Centres will apply the following penalties for work submitted late:

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
• where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

The University policy statement on penalties for late submission can be found at: /cqsd/-/media/project/functions/cqsd/documents/cqsd-old-site-documents/penaltiesforlatesubmission.pdf
You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Assessment requirements for a pass:

A minimum mark of 50%.

Reassessment arrangements:

Re-assessment for all modules takes place in August/September of the same year.ÌýRe-assessment for this module will be by set exercise.

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Additional Costs (specified where applicable):

1) Required text books:ÌýA list of articles and recommended study material will be provided in due course.

2) Specialist equipment or materials:Ìý

3) Specialist clothing, footwear or headgear:Ìý

4) Printing and binding:Ìý

5) Computers and devices with a particular specification:ÌýWindows preferable but not essential

6) Travel, accommodation and subsistence:Ìý

Last updated: 30 March 2023