GRA 2245 Economic Psychology
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APPLIES TO ACADEMIC YEAR 2012/2013
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GRA 2245 Economic Psychology Responsible for the course Laura E Mercer Traavik Department Department of Leadership and Organizational Behaviour Term According to study plan ECTS Credits 6 Language of instruction English Introduction Economic decisions are ubiquitous and interwoven into many of our everyday experiences. An economic decision is any decision about the expenditure and saving of time, money and effort. In traditional economics it is assumed that people’s actions are fuelled only by self interest and that they make rational decisions which maximize their well being. This type of decision maker is often referred to as economic man (person). This person exists only in a world built of false assumptions. People are not economic man, people are human. Typical deviations from the economic predictions are found when we give money to a charity, pay too much for a house, value fairness over outcomes, walk away from a profitable deal, and when we are not always happy with more choice or more resources (to name but a few). Economic psychology aims to describe, predict and explain the actual economic behaviour of individuals, groups, and large categories of people (e.g. consumers). In this course we examine how psychological theories can help us identify the factors and mechanisms that affect economic decisions and clarify the anomalies that we find. We begin the course with an overview of the field, and then we examine selected deviations from the predictions given by classic economic models. The third section of the course will focus on the work context with an emphasis on interdependent decisions situations (e.g. salary negotiation and auctions).
Prerequisites GRA 2204 Judgement and Decision Making in Organizations or GRA 2205 Organizational Behaviour Compulsory reading Books: Thaler, Richard, Cass R. Sunstein. 2009. Nudge : improving decisions about health, wealth, and happiness. Rev. and expanded ed.. Penguin Books Collection of articles: 2010. Current topics in economic psychology - a collection of research articles will be made available before the course starts Other: During the course there may be hand-outs and other material on additional topics relevant for the course and the examination. Recommended reading Books: Bazerman, Max H. 1999. Smart money decisions : why you do what you do with money (and how to change for the better). John Wiley & Sons Thaler, Richard H. 1994. The winner's curse : paradoxes and anomalies of economic life. Princeton University Press Course outline - Introduction to economic psychology - Deviations from the economic models of human behaviour and explanations of economic anomalies with psychological theories and concepts - Examination of economic behaviour in the work context using an economic psychological approach Computer-based tools Presentation tool such as PowerPoint. It's learning Learning process and workload The course is structured as a combination of lectures, discussions, and compulsory in-class activities. A course of 6 ECTS credits corresponds to a workload of 160-180 hours. Please note that it is the student’s own responsibility to obtain any information provided in class that is not included on the course homepage/It's learning or text book.
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