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NBS8616 : Behavioural Economics

  • Offered for Year: 2024/25
  • Module Leader(s): Dr Till Weber
  • Lecturer: Dr Melanie Parravano Baro
  • Owning School: Newcastle University Business School
  • Teaching Location: Newcastle City Campus

Your programme is made up of credits, the total differs on programme to programme.

Semester 2 Credit Value: 20
ECTS Credits: 10.0
European Credit Transfer System


The aim of this module is to provide an overview of recent theories and applications in behavioural economics. Students will learn how psychological foundations of behaviour are incorporated in recent economic theory. The module will also cover applications of behavioural economic theory to areas such as public policy.

Outline Of Syllabus

The following list contains an indicative set of topics:

1. Rational choice
-Bounded rationality
-Heuristics and biases

2. Decision-making under risk and uncertainty
-Loss aversion
-Prospect theory

3. Intertemporal choice
-Time inconsistency
-Hyperbolic discounting

4. Strategic reasoning in games
-Cognitive hierarchy
-Noisy introspection

5. Coordination games
-Equilibrium selection devices

6. Social utility
-Inequality aversion and reciprocity
-Social norms

7. Further topics and applications

Teaching Methods

Teaching Activities
Category Activity Number Length Student Hours Comment
Guided Independent StudyAssessment preparation and completion641:0064:00N/A
Scheduled Learning And Teaching ActivitiesLecture142:0028:00Present-in-person
Guided Independent StudyDirected research and reading501:0050:00N/A
Scheduled Learning And Teaching ActivitiesSmall group teaching81:008:00Pre-assigned seminar readings, discussions and problem sets.
Guided Independent StudyIndependent study501:0050:00N/A
Teaching Rationale And Relationship

The modules will be taught using a combination of lectures, seminars, guided reading and classroom experiments, harnessing the Experimental and Behavioural Economics Lab at Newcastle University Business School. There will be an emphasis on research-led teaching and the critical assessment of novel experimental design and results.

Assessment Methods

The format of resits will be determined by the Board of Examiners

Description Length Semester When Set Percentage Comment
Written Examination1802A100N/A
Formative Assessments

Formative Assessment is an assessment which develops your skills in being assessed, allows for you to receive feedback, and prepares you for being assessed. However, it does not count to your final mark.

Description Semester When Set Comment
Prob solv exercises2MN/A
Assessment Rationale And Relationship

The end-of-semester examination will test student’s understanding of behavioural regularities, behavioural economic models and their application to policy. In the written exam, students will be able to demonstrate their ability to critically assess the theoretical literature and apply their knowledge to important economic issues.

Reading Lists