Overview
People often make economic decisions that violate the standard assumptions of rationality and self-interest. This paper explores theories of such behaviour that incorporate evidence from psychology and other behavioural sciences.
Economic models often presume (at least implicitly) that decision-makers are rational, self-interested, fully informed and endowed with perfect foresight. It is not difficult to find violations of each of these precepts in real-world economic behaviour, and the study of the "limits to rationality" has become a vibrant and rapidly growing field within economics. This paper will focus on evidence of seemingly "psychological" phenomena in the marketplace and consider how these phenomena can be incorporated into the larger body of economic thought.
About this paper
| Paper title | Behavioural Economics |
|---|---|
| Subject | Economics |
| EFTS | 0.15 |
| Points | 18 points |
| Teaching period | Semester 1 (On campus) |
| Domestic Tuition Fees ( NZD ) | $1,053.30 |
| International Tuition Fees | Tuition Fees for international students are elsewhere on this website. |
- Prerequisite
- 18 200-level ECON points
- Schedule C
- Arts and Music, Commerce, Science
- Notes
- May not be credited together with ECON351 passed in 2012, 2013, or 2014.
- Contact
- economics@otago.ac.nz
- Teaching staff
- Dr Trent Smith
- Textbooks
The lectures will not closely follow any single textbook. If students want a supplementary text to the provided readings, we suggest An Introduction to Behavioral Economics by Nick Wilkinson, 2nd edition (2012).
- Graduate Attributes Emphasised
- Global perspective, Interdisciplinary perspective, Lifelong learning, Scholarship, Communication, Critical thinking, Cultural understanding, Ethics, Information literacy, Research, Self-motivation.
View more information about Otago's graduate attributes. - Learning Outcomes
Students who successfully complete this paper will be introduced to key theories, issues and problems in the area of behavioural economics.
Particular emphasis will be placed upon considering evidence from a broad spectrum of the behavioural sciences, such as social psychology, anthropology and neuroscience, and incorporating this evidence into economic theory.
Timetable
Overview
People often make economic decisions that violate the standard assumptions of rationality and self-interest. This paper explores theories of such behaviour that incorporate evidence from psychology and other behavioural sciences.
Economic models often presume (at least implicitly) that decision-makers are rational, self-interested, fully informed and endowed with perfect foresight. It is not difficult to find violations of each of these precepts in real-world economic behaviour, and the study of the "limits to rationality" has become a vibrant and rapidly growing field within economics. In this paper, we will investigate some of the more "psychological" phenomena observed in the marketplace. In the process, we will see that often seemingly "irrational" behaviours can in fact be understood as a clever ("rational") strategic choice made in inappropriate situations. This "ecological rationality" perspective provides a fascinating lens through which to view human behaviour and is supported by evidence from other disciplines such as psychology, anthropology and neuroscience.
About this paper
| Paper title | Behavioural Economics |
|---|---|
| Subject | Economics |
| EFTS | 0.15 |
| Points | 18 points |
| Teaching period | Semester 1 (On campus) |
| Domestic Tuition Fees | Tuition Fees for 2027 have not yet been set |
| International Tuition Fees | Tuition Fees for international students are elsewhere on this website. |
- Prerequisite
- 18 200-level ECON points
- Schedule C
- Arts and Music, Commerce, Science
- Notes
- May not be credited together with ECON351 passed in 2012, 2013, or 2014.
- Contact
- economics@otago.ac.nz
- Teaching staff
- Associate Professor Trent Smith
- Textbooks
The lectures will not closely follow any single textbook. If students want a supplementary text to the provided readings, we suggest:
- An Introduction to Behavioral Economics by Nick Wilkinson, 2nd edition (2012).
- Graduate Attributes Emphasised
- Global perspective, Interdisciplinary perspective, Lifelong learning, Scholarship, Communication, Critical thinking, Cultural understanding, Ethics, Information literacy, Research, Self-motivation.
View more information about Otago's graduate attributes. - Learning Outcomes
Students who successfully complete this paper will be introduced to key theories, issues and problems in the area of behavioural economics.
Particular emphasis will be placed upon considering evidence from a broad spectrum of the behavioural sciences, such as social psychology, anthropology and neuroscience, as well as incorporating this evidence into economic theory.