316-337 Behavioural Economics

316-201 Intermediate Macroeconomics and 316-202 Intermediate Microeconomics.

Behavioural economics extends traditional economics by incorporating insights into human behaviour derived from psychology and sociology. The behavioural patterns studied in this subject include judgement biases, mental accounting, framing, loss aversion and anchoring, present-biased preferences, fairness, negative reciprocity and visceral influences. Applications of behavioural economics to both microeconomic and macroeconomic topics will be considered, such as self-control, wage rigidity and involuntary unemployment, social capital and the equity premium puzzle. Research techniques emphasised in behavioural economics, such as experimental methods, will be discussed.

• High level of development: written communication; application of theory to practice; critical thinking; synthesis of data and other information; evaluation of data and other information.

• Moderate level of development: oral communication; problem solving; interpretation and analysis; accessing data and other information from a range of sources; receptiveness to alternative ideas.

• Some level of development: collaborative learning; team work; statistical reasoning; use of computer software.

A 2-hour end-of-semester examination (70%) and an essay of approximately 3000 words (30%).

To be advised.