Module code: EC3089
This modules deals with a branch of economics that stems from cognitive psychology that aims to try and understand the actual behaviours that underlie an individual's decisions. Economics theories have been developed to understand the decision making process in situations of risk and uncertainty. Traditional models classifying humans as rational and self-interested individuals - so when you are given a selection of unfavourable and uncertain choices you will pick the choice that will benefit you as an individual the most.
Contemporary behavioural economics seeks to question and examine this model by taking a closer look at what social preference factors- this could range from taking unfavourable options to spite others, or making choices that will help others - play into these scenarios. This module will also take a look at how time comes into play when making decisions, you will focus on why some consumers are more inclined to spend now over the future and vice versa. You will explore how factors such as current and future income, and rates of interest influence these decisions.