Nottingham University Business School
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The Psychology of Economic and Business Decisions

Please note that the following information may be subject to change.

Programme: Undergraduate

Module Code: N12623

Semester: Autumn

Convenor: Jeremy Larner

Credits & Level: 10 Credits, Level 2

Pre-requisites: N11607 (Business Economics) OR N11606 (Microeconomics for Business A) or equivalent modules.

Co-requisites: None.

Target Students: Available to all Part I and Part II students with the required pre-requisite. CANNOT be taken by students who have taken an equivalent module from the School of Economics.

Delivery: 11 x ninety-minute lectures and 2 x sixty minute seminars

Assessment: One 1.5 hour Examination (100%)

Exam Format:Answer TWO out of FOUR equally-weighted questions

Summary of Content Much economic and business behaviour deviates from the traditional views of rationality, eg utility and profit maximisation. This module provides an overview of alternative views of decision making from behavioural economics and the economic psychology of individual choice. The focus is both on new methods of economic enquiry and the insights they have generated into economic and business decision making. These new approaches include: experimental and cognitive economics, neuroeconomics, economics of emotions and happiness, behavioural finance, cultural economics, social preferences and evolutionary psychology.

Aims The aim of the module if to familiarise students with the theoretical concepts and insights the economics of psychology has generated and to enable students to apply these independently to business and management problems.

Key Words: Behavioural economics, economics of psychology

Learning Objectives & Outcomes Knowledge and understanding
This module develops a knowledge and understanding of:
  • A coherent core of economic principles, including the microeconomics of decision and choice, production and exchange, economic welfare; the macroeconomics of employment, national income, the balance of payments, inflation, growth, and money. Understanding extends to economic policy, analytical methods and model-based argument.
    The applications of economics, in particular in the field of industrial, organizational and managerial economics.
    Ability to apply core economic theory and economic reasoning to applied topics.
    Understanding of verbal, graphical, mathematical and econometric representation of economic ideas and analysis.
Intellectual skills
This module develops:
  • The ability to analyse and evaluate a range of business data, sources of information and appropriate methodologies, which includes the need for strong digital literacy, and to use that research for evidence-based decision-making
  • Conceptual and critical thinking, analysis, synthesis and evaluation
Professional practical skills
This module develops:
  • Numeracy and quantitative skills to manipulate data, evaluate, estimate and model business problems, functions and phenomena
  • Self-analysis and awareness/sensitivity to diversity in terms of people and cultures. This includes a continuing appetitie for development.
Transferable (key) skills
This module develops:
  • Building and maintaining relationships
  • Emotional intelligence and empathy
  • Subject-specific transferable skills including abstraction, analysis, deduction and induction, and problem framing.

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