ECM191-Microeconomics III

Module Provider: School of Politics, Economics and International Relations
Number of credits: 10 [5 ECTS credits]
Level:7
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2019/0

Email: a.p.friedl@reading.ac.uk

Type of module:

Summary module description:

This module provides an advanced treatment of individual decision making. The stating point will be the standard theories of decision making under risk (expected utility theory), uncertainty (subjective expected utility theory), and over time (discounted utility), as well as for the combination of risk/uncertainty and time (discounted expected utility theory). Subsequently, these theories will be probed for their descriptive accuracy based actually observed decisions. Building on those, the course will introduce descriptively accurate models of decision making from behavioural economics, and compare them to the standard models.  

Aims:

This module aims to provide students an advanced exposure to individual decision-making based on a deep understanding of classical microeconomics as well as its modern development and how it interacts with real world situations. 

Assessable learning outcomes:

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

(1) Critically assess microeconomic concepts and principles;

(2) Evaluate whether the empirical evidence (observational or experimental) supports the theoretical predictions;

(3) Appreciate theoretical concepts and the circumstances in which they apply.

Additional outcomes:

Problem sets and articles for discussion will be provided during the module. These will provide an opportunity for students to develop their analytical and problem-solving skills, as well as their ability to understand technical articles and apply theoretical knowledge to real world situations. 

Outline content:

Core topics to be covered include: decision making under risk and uncertainty; decision making over time; interactions between risk and time; assessments of uncertainty outcomes. 

Brief description of teaching and learning methods:

Detailed guidance on the topics covered will be provided in the weekly lectures, together with handouts covering the material discussed, examples, exercises and solutions to facilitate understanding of key concepts. Students will be expected to supplement the lectures with the recommended reading of articles and book chapters and to do some research using the library, internet or other resources. Office hours are available for students to consult the lecturer on an individual basis. 

Summative assessment- Examinations:

One 2-hour unseen written paper, which will cover all of the module material.

Postgraduate examinations are held in the summer term. 

Summative assessment- Coursework and in-class tests:

Coursework will count for 40% of the overall mark and comprises two set exercises to be submitted in the Spring term. 

Formative assessment methods:

Penalties for late submission:

Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx

Assessment requirements for a pass:

A minimum weighted average mark of coursework and examination of 50%.

Reassessment arrangements:

Re-examination for all modules takes place in August/September of the same year.

Re-assessment is by examination only; coursework is not included at the second attempt.

Additional Costs (specified where applicable):
1) Required text books:
2) Specialist equipment or materials:
3) Specialist clothing, footwear or headgear:
4) Printing and binding:
5) Computers and devices with a particular specification:
6) Travel, accommodation and subsistence:

Last updated: 11 November 2019