ECO3005 : Behavioural Economics and Experimental Methods
- Offered for Year: 2017/18
- Module Leader(s): Dr Jytte Seested Nielsen
- Lecturer: Professor Susan Chilton
- Owning School: Newcastle University Business School
- Teaching Location: Newcastle City Campus
|Semester 1 Credit Value:||10|
|Semester 2 Credit Value:||10|
The primary aim of the module is to introduce students to the basic foundations of behavioural economics and experimental methods in the context of so-called “behavioural anomalies” that stand in contrast to the predictions of standard economic theory with respect to individual behaviour. Students will gain experience of economic decision-making experiments as an analytical technique.
Outline Of Syllabus
In the past twenty years there has been a revolution in economics with the study not of how people would behave if they were perfectly rational, but of how they actually behave – and this has thrown up a number of so-called apparently persistent “behavioral anomalies” that stand in contrast to the predictions of conventional economic theory. In this module we will illustrate how experimental methods have been and can be utilized to explore a number of such anomalies and assess their robustness
The module will be based around the following topics.
1.Introduction to behavioural economics
2.Experiment methods. Techniques.
3.Experimental methods. Applications
7.Market experience and anomalies
8.Free-riding (or lack of free-riding)
9.Ambiguity aversion (Ellsberg Paradox)
10.Fairness and reciprocity (Dictator game and/or Ultimatum game).
13.Time inconsistent preferences
Each topic will be supported, either singularly or in combination, by:
i.Experiments - experiments sourced from the literature. Students will participate in the experiments and will analyse the data and present the results to the rest of the group
ii.Student group presentations: The subject groups will present a summary outline and main results of a key paper within the topic
iii.Lectures: will place the student tasks into their wider context by drawing on other evidence in the literature, thus providing a broader perspective to the topic and will, where relevant, assess the implications for conventional theory.
|Guided Independent Study||Assessment preparation and completion||1||50:00||50:00||N/A|
|Scheduled Learning And Teaching Activities||Lecture||28||1:00||28:00||N/A|
|Guided Independent Study||Directed research and reading||1||26:00||26:00||N/A|
|Scheduled Learning And Teaching Activities||Small group teaching||8||1:00||8:00||N/A|
|Guided Independent Study||Student-led group activity||1||30:00||30:00||N/A|
|Guided Independent Study||Independent study||1||58:00||58:00||N/A|
Teaching Rationale And Relationship
i. Experiments – Intended Knowledge Outcome 2, Intended Skills Outcomes 1,2,3.
ii. Student group presentations – Intended Knowledge Outcomes 1, Intended Skills Outcomes 5
iii. Lectures – Intended Knowledge Outcomes 1,2, Intended Skills Outcomes 4
iv. Small group teaching – Intended Skills Outcomes 2,3
The format of resits will be determined by the Board of Examiners
|Report||2||M||30||Individual report of 3,000 words|
Assessment Rationale And Relationship
The unseen examination at the end of the module is designed to encourage study and to test student understanding of the fundamental theoretical and empirical evidence with respect to economic behavioural anomalies. The report provides the student with the opportunity to demonstrate effective in-depth, written communication of the experimental process and its outputs.