Not available in 2021/22
MG452 Half Unit
Behavioural Economics for Management
This information is for the 2021/22 session.
Teacher responsible
Dr Kristof Madarasz NAB5.36
Availability
This course is available on the CEMS Exchange, Global MSc in Management, Global MSc in Management (CEMS MiM), Global MSc in Management (MBA Exchange), MBA Exchange, MSc in Economics and Management and MSc in Management and Strategy. This course is available with permission as an outside option to students on other programmes where regulations permit.
Pre-requisites
Graduate level Microeconomics, Game Theory or Managerial Economics, Graduate level Econometrics or Quantitative Analysis is required.
Course content
The course covers formal (mathematical) models of behavioural economics and discusses both experimental and field evidence that motivate and test various aspects of these models.
This course is a post-graduate introduction to behavioural economics and strategy. The topics to be discussed are
1. Risk Perceptions, Loss Aversion and Reference-Dependence.
2. Procrastination, Self Control and Choice over Time.
3. Social Motivation: Image, Reciprocity and Inequity.
4. Processing Information and Mistakes in Cognition
5. Naivite and Heuristics in Strategic Thinking
6. Happiness and Welfare
Teaching
30 hours of lectures in the LT. 2 hours of lectures in the ST.
Students on this course will have a reading week in Week 6, in line with departmental policy.
Formative coursework
A mock exam comprising of problem sets.
Indicative reading
CamererCamerer, Colin, Linda Babcock, George Loewenstein, and Richard Thaler (1997) "Labor Supply of New York City Cabdrivers: One Day at a Time," Quarterly Journal of Economics
Fehr Ernst and Simon Gachter (2002) Fairness and Retaliation: The Economics of Reciprocity Journal of Economic Perspectives, 2000 (14); 159-181.
Kahneman, Daniel, and Amos Tversky (1979) "Prospect Theory: An Analysis of Decision under Risk" Econometrica, 47(2): 263-292.
Koszegi, B. and Matthew Rabin (2006) Reference-Dependent Preferences. Quarterly Journal of Economics
Laibson, David. (1997) Golden Eggs and Hyperbolic Discounting. Quarterly Journal of Economics
List, John A. 2004. "Neoclassical Theory Versus Prospect Theory: Evidence from the Marketplace," Econometrica, 72(2): 615-625.
Madarasz, Kristof (2012) Information Projection: Model and Applications. Review of Economic Studies
Thaler, Richard and Shlomo Benartzi (2004). Save More Tomorrow: Using Behavioral Economics to Increase Employee Saving, Journal of Political Economy.
Rabin, Matthew (2002) Inference by the Believers in the Law of Small Numbers. Quarterly Journal of Economics
Stortz, Richard. (1955) Myopia and Inconsistency in Dynamic Utility Maximization. Review of Economic Studies
Assessment
Exam (100%, duration: 2 hours) in the summer exam period.
Course selection videos
Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.
Important information in response to COVID-19
Please note that during 2021/22 academic year some variation to teaching and learning activities may be required to respond to changes in public health advice and/or to account for the differing needs of students in attendance on campus and those who might be studying online. For example, this may involve changes to the mode of teaching delivery and/or the format or weighting of assessments. Changes will only be made if required and students will be notified about any changes to teaching or assessment plans at the earliest opportunity.
Key facts
Department: Management
Total students 2020/21: Unavailable
Average class size 2020/21: Unavailable
Controlled access 2020/21: No
Value: Half Unit
Personal development skills
- Team working
- Problem solving
- Application of information skills
- Communication
- Application of numeracy skills
