EC4407 Behavioural Economics: Individual Decisions and Welfare

Academic year

2025 to 2026 Semester 1

Further information on which modules are specific to your programme.

Key module information

SCOTCAT credits

20

The Scottish Credit Accumulation and Transfer (SCOTCAT) system allows credits gained in Scotland to be transferred between institutions. The number of credits associated with a module gives an indication of the amount of learning effort required by the learner. European Credit Transfer System (ECTS) credits are half the value of SCOTCAT credits.

SCQF level

SCQF level 10

The Scottish Credit and Qualifications Framework (SCQF) provides an indication of the complexity of award qualifications and associated learning and operates on an ascending numeric scale from Levels 1-12 with SCQF Level 10 equating to a Scottish undergraduate Honours degree.

Planned timetable

When confirmed, check online https://timetables.st-andrews.ac.uk/.

This information is given as indicative. Timetable may change at short notice depending on room availability.

Module coordinator

Dr T Cuhadaroglu

Dr T Cuhadaroglu
This information is given as indicative. Staff involved in a module may change at short notice depending on availability and circumstances.

Module Staff

Dr Tugce Cuhadaroglu

This information is given as indicative. Staff involved in a module may change at short notice depending on availability and circumstances.

Module description

This module combines traditional neoclassical microeconomics models of rational choice and empirically supported assumptions with the goal of providing a better understanding of economic behaviour and welfare in settings that range from single-person decision problems under certainty, risk and uncertainty to intertemporal decision problems as well as biases in the formation and updating of probabilistic beliefs. The module will introduce rigorous theoretical models that deviate from the standard rationality assumptions in order to explain some commonly observed behavioural patterns. Welfare-relevant economic and policy implications of these behavioural patterns and models will also be discussed.

Relationship to other modules

Pre-requisites

PERMISSION OF THE ECONOMICS HONOURS ADVISER

Assessment pattern

2-hour Written Examination = 50%, Coursework = 50%

Re-assessment

2-hour Written Examination = 100%

Learning and teaching methods and delivery

Weekly contact

20 hours of lectures over 11 weeks, 1-hour tutorial (x 5 weeks).

Scheduled learning hours

25

The number of compulsory student:staff contact hours over the period of the module.

Guided independent study hours

175

The number of hours that students are expected to invest in independent study over the period of the module.

Intended learning outcomes

  • become familiar with the main objectives and methods of behavioural economics
  • Learn about some systematic ways in which the textbook models of rational choice are violated in the context of riskless, risky, uncertain, intertemporal and strategic choice
  • Introduced to some alternative behavioural theories that incorporate insights from psychology and help explain some of the observed deviations of actual behaviour from the predictions of the standard models
  • Learn about the possible welfare implications of such behaviour