ECM653: Applied Behavioural Economics

Module code: ECM653

Module provider: Economics; School of Philosophy, Politics and Economics

Credits: 20

Level: Postgraduate Masters

When you'll be taught: Semester 2

Module convenor: Dr Anwesha Mukherjee, email: anwesha.mukherjee@reading.ac.uk

Pre-requisite module(s):

Co-requisite module(s):

Pre-requisite or Co-requisite module(s):

Module(s) excluded:

Placement information: NA

Academic year: 2024/5

Available to visiting students: Yes

Talis reading list: Yes

Last updated: 23 May 2024

Overview

Module aims and purpose

This module applies insights from psychology to a range of economic problems. Students will learn how rich psychological 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 gives students the practical tools needed to be behavioural economists: designing studies and using the data to infer generalisable features of economic behaviour.

The aims of this module are to:

• explain the key assumptions that underlie behavioural economics regarding the manner in which economic decisions are made;
• illustrate and evaluate the evidence for these assumptions;
• introduce models of decision making which embed these assumptions and can make predictions in novel policy domains;
• enable students to apply behavioural economic interventions and assess their effect.

Module learning outcomes

By the end of the module, it is expected that students will 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. Programme a basic interactive behavioural experiment
4. Analyse experimental data using appropriate inference methods
5. Develop the following skills: designing experimental studies; programming simple interactive games; working with statistical and econometric software

Module content

Topics may include: decision under uncertainty and applications to consumer finance; reference dependence in labour markets and organisations; the implications of social comparisons; identity and political economy; altruism, fairness and trust considerations; bargaining; trade under incomplete contracts; social norms & herding; unanchored expectations in bubbles and winner’s curses; behavioural welfare economics.

Structure

Teaching and learning methods

This module is delivered through a combination of lectures and PC classes. Lectures will introduce the core theoretical concepts, their applications, and sketch existing empirical evidence. Students will additionally learn how to design, programme, and analyse a simple online experiment through a series of seminars and PC classes, during which collaborative working will be encouraged. The practical sessions in the first weeks of term teach programming games; those in later weeks will ask students to use existing experimental data sets to answer set questions. Part of the assessment involves students participating in each other’s own experiments, which will happen during a seminar held at the end of term.

Study hours

At least 30 hours of scheduled teaching and learning activities will be delivered in person, with the remaining hours for scheduled and self-scheduled teaching and learning activities delivered either in person or online. You will receive further details about how these hours will be delivered before the start of the module.

Please note the independent study hours above are notional numbers of hours; each student will approach studying in different ways. We would advise you to reflect on your learning and the number of hours you are allocating to these tasks.

Semester 1 The hours in this column may include hours during the Christmas holiday period.

Semester 2 The hours in this column may include hours during the Easter holiday period.

Summer The hours in this column will take place during the summer holidays and may be at the start and/or end of the module.

Assessment

Requirements for a pass

Students need to achieve an overall module mark of 50% to pass this module.

Summative assessment

Penalties for late submission of summative assessment

The Support Centres will apply the following penalties for work submitted late:

Assessments with numerical marks

• 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 three working days;
• the mark awarded due to the imposition of the penalty shall not fall below the threshold pass mark, namely 40% in the case of modules at Levels 4-6 (i.e. undergraduate modules for Parts 1-3) and 50% in the case of Level 7 modules offered as part of an Integrated Masters or taught postgraduate degree programme;
• where the piece of work is awarded a mark below the threshold pass mark prior to any penalty being imposed, and is submitted up to three working days after the original deadline (or any formally agreed extension to the deadline), no penalty shall be imposed;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

Assessments marked Pass/Fail

• where the piece of work is submitted within three working days of the deadline (or any formally agreed extension of the deadline): no penalty will be applied;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension of the deadline): a grade of Fail will be awarded.

The University policy statement on penalties for late submission can be found at: https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/qap/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.

Formative assessment

Formative assessment is any task or activity which creates feedback (or feedforward) for you about your learning, but which does not contribute towards your overall module mark.

Reassessment

Additional costs