Economics for Management
This module focuses on decision making processes, how we make decisions both as an individual and in groups. The course has a behavioral bias, focusing on some of the inherent biases in our decision processes and both the normative and informative pressures on individuals which can affect decision making. The course includes a discussion on how public policy can “nudge” individuals and groups to make better decisions using some of the theory from decision making processes. This includes how we can affect decision making processes in increasing savings rates, and making better decisions for the environment and our health. The course requires the ability to critically analyse readings and is essay based and only a very modest amount of quantitative proficiency will be required. Thus, if you wish to undertake a more technical and mathematical course, then you should consider Economic Principles (BEE1029).
(BEE1034) Economics for Management cannot be taken if you are already taking or have taken (BEE1030) Microeconomics, (BEE1031) Macroeconomics or (BEE1029) Economic Principles.
Full module specification
|Module title:||Economics for Management|
Non-requisites: Cannot be taken with or if you have taken BEE1029, BEE1030 or BEE1031
|Duration of module:||
Duration (weeks) - term 2: |
Economics offers powerful insights into the world in which we live. This introductory economics course aims:
- to provide an essential, simple, use-able body of economic theory, which will both provide the basis for further study and equip students with a real understanding of the role of economics in business, public and private decision making
- to encourage students to understand how we make decisions (thinking fast and slow) and why we can sometimes make poor decisions
- to give students an understanding of how businesses use economic theory to make decisionsto illustrate how economics is relevant to other areas of management, in particular decision making and marketing to develop students’ understanding of the how we can use economic theory to enrich and improve our welfare
- to examine how changes in economic policy will affect business behavior
- to consider the issue of the global economy and the challenges businesses are facing
- to convince students, using a blend of theory, applications and policy analysis, that economics is both interesting and relevant
ILO: Module-specific skills
- 1. An understanding of how we make decisions, in particular the difference between thinking fast and thinking
- 2. An understanding of some of the biases that affect our decision making, including anchoring, present bias, representative-ness, availability, halo effect, regression to the mean.
- 3. An understanding of Prospect Theory and its implications
- 4. An understanding of group pressures such as group think, group polarization, and informational cascades and how they affect our decision processes particularly in groups. describe the competitive environment in which firms operate and explain how that will affect decision-making
- 5. An understanding of the Akerlof and Shillers concept phishing for phools and the implications that has for public policy and economic progression
- 6. An understanding of the concept of a nudge, and how nudges can affect behavior across a wide range of areas such as health care, the environment and savings.
ILO: Discipline-specific skills
- 7. Demonstrate reasoning and problem-skills. Students will understand what is meant by 'thinking like a behavioral economist'
- 8. Demonstrate an understanding of the links between current economic problems and economic theory
ILO: Personal and key skills
- 9. Demonstrate problem-solving and independent study skills
- 10. Use the ELE and the online resources that are companion to the textbook to develop IT skills
Learning activities and teaching methods (given in hours of study time)
|Scheduled Learning and Teaching Activities||Guided independent study||Placement / study abroad|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|Scheduled||22 (2 hours per week)||Lectures|
|Scheduled||4-5 (1 hour each)||Tutorials|
|Guided Independent Study||12 ( approx 1 hour per week)||Web-based activities|
|Guided Independent Study||34 (approx 3 hours per week)||Use of Online Resources|
|Guided Independent Study||56 (approx 5 hours per week)||Reading|
|Guided Independent Study||22 (2 hours per week)||News Research and Reading|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Tutorials||Throughout the term||1-12||Feedback on tutorial exercises|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Examination||100||2 hours in January. The exam will be open book, with students allowed to bring any 2 textbooks into the exams. Students can highlight but cannot write any notes in the books that they bring to the exam.||1-13||Exam result and feedback as requested|
Details of re-assessment (where required by referral or deferral)
|Original form of assessment||Form of re-assessment||ILOs re-assessed||Timescale for re-assessment|
|Examination (100%)||Examination 100%||1-13||Referral Exam Period - Exam result and feedback as requested|
- How we make decisions
- Why we are “predictably irrational” in many of our decision processes
- Prospect Theory and its implications
- Nudge economics and how it can be used to improve welfare
Indicative learning resources - Basic reading
”Thinking, fast and slow” by Daniel Kahneman
Further texts and readings are suggested on the ELE.
Module has an active ELE page?
Last revision date