In the changing global economy, understanding the effects and processes of psychological, social, cognitive and emotional factors on decisions of individuals, businesses and policy makers is becoming increasingly important. This course is designed to critically evaluate how non-economic variables in conjunction with traditional economic variables and institutional factors affect the behaviour of economic agents and how this impacts on market prices, revenue, costs and resource allocation in the market place. This course focuses on recent developments in experience-based theories of choice. Emphasis placed on the application of judgement in decision making thus providing a sound theoretical and empirical basis in the practice of cognitive decision making. We extend the analysis to examine the common biases inherent in decision making processes and investigate how judgements are made in times where there is asymmetric information. The course provides a range of practical, hands-on laboratory experiments designed to equip students with the required tools to make sound and effective economic and business decisions.
Not currently offered.
This Course was last offered in Trimester 1 - 2018.
On successful completion of the course students will be able to:
1. An integrated understanding of the theoretical and practical aspects of behavioural economics for decision making and the associated controversies.
2. Competence in applying a behavioural approach to critically analyse and solve real world problems that relate to decision making processes of individuals, business and public policy makers.
3. An awareness of and an ability to analyse cognitive biases in behavioural decision making
4. Advanced written and oral communication skills, to interpret and transmit knowledge to a range of stakeholder audiences
The topics in this course may include the following:
- Theories of Behavioural Decision Making
- Decision Making Models
- Psychology of Decision Making
- Group and System Dynamics
- Business and Management Decision Simulation
- Improving Judgement in Business Decision Making
- Formulating Decisions
- Eliciting Beliefs and Values in Business Decision Making
- Leadership and Power
- Role of Emotions in Business Decision Making
Presentation: Oral Discussion
Presentation: Project Presentation