Course overview
The aim of this course is to critically investigate the behavioural assumptions underlying standard economic theory by contrasting them with actual human behaviour observed in diverse contexts. Students will explore the limitations of traditional economic models and develop a deeper understanding of how psychological factors influence decision-making processes. By examining empirical evidence and engaging with alternative theories that incorporate psychological realism, students will learn to formulate and assess more accurate models of human behaviour and apply them in a wide variety of different real-world situations.
- Choice Under Certainty
- Probability Judgement
- Choice Under Risk and Uncertainty
- Intertemporal Choice
- Strategic Interactions
Course learning outcomes
- Critically discuss the standard assumptions made in standard economic theory.
- Derive behaviour predicted by standard theory in simple individual and strategic decision environments.
- Identify commonly observed behaviour that contradicts predictions from standard theory.
- Explain and apply alternative behavioural theories that incorporate psychological phenomena into economic theory.
- Demonstrate if and how alternative theories can rationalise behaviour that cannot be explained by standard theory.
Degree list
The following degrees include this course