To achieve an overall passing grade in this subject, students must pass the mandatory  oral hurdle assessment.
Group presentation (students please note that this assessment will be held in Week 10 of the trimester period.  Further information about this assessment will be provided by your Lecturer/Subject Coordinator)

Economists (and their models) typically assume that people act rationally, which is a contentious assumption. This subject demonstrates persistent irrational human behaviour (for example cognitive dissonance, procrastination and norm adherence), pointing at failure of rational models. The subject then presents alternative models, which accept irrationality and have more predictive power. The subject provides relevant skills to students in economics and more broadly to students with an interest in psychology or who wish to understand how to nudge human behaviour in a desired direction.

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[Anti-requisite] EC5217 BX2124 Offerings: All

[Pre-requisite] BU1003 OR BU1903 OR EV2003 OR EG4000 OR (EC1010 AND EC1020)

[Pre-requisite] BU1003 OR BU1903 OR EV2003 OR EG4000 OR (EC1010 AND EC1020) Offerings: All

BX3124 - Behavioural Economics for Sustainable Policy

Behavioural Economics for Sustainable Policy

Design an experiment for which behavioural and rational models predict opposing outcomes, to infer which of the two models more accurately predicts human behaviour in a chosen setting

Examine and critique how humans make choices, form beliefs and deal with risk and uncertainty and how this may deviate from the assumptions of rational economic models

Describe empirical shortcomings of rational economic models regarding inter-temporal choices and social preferences and compare this to the application of behavioural models