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BX2124 - Behavioural Economics for Sustainable Policy

Credit points: 3
Year: 2014
Student Contribution Band: Band 3
Administered by: School of Business (pre 2015)

This subject steps beyond the standard assumption of 'rationality' that is often adopted in economics - looking instead at what does, and does not, happen in markets when other behaviours influence individual decision making. Covering topics such as regret and disappointment theory, money illusion, and loss aversion, new insights are gained into why the market can and does deliver sub-optimal (non-sustainable) outcomes. A range of different policies that seek to redress problems in areas such as health and the environment (many of which arise from those behaviours) are analysed, and their ability to redress problems using traditional economic 'price-based' policies as well as more innovative 'non-price' mechanisms are explored.

Learning Outcomes

  • demonstrate an ability to use the models to make predictions about the possible consequences of those behaviours on society, and to derive policy solutions to problems posed in these circumstances;
  • understand a range of different models that seek to explain the behavioural drivers of (among others) regret and disappointment theory, money illusion, and loss aversion and subsequent market failures;
  • understand the way in which a range of heuristics and beliefs can influence individual behaviours thus creating market failure.
Prerequisites: BU1003 OR EV2003
Inadmissible
Subject
Combinations:
EC5217

Availabilities

Townsville, Internal, Study Period 2
Census Date 28-Aug-2014
Coord/Lect: Assoc. Professor Riccardo Welters.
Workload expectations:
  • 26 hours lectures
  • 12 hours tutorials
Assessment: end of semester exam (40%); assignments (20%); mid semester test/quiz (40%).

External, Study Period 2
Census Date 28-Aug-2014
Coord/Lect: Assoc. Professor Riccardo Welters.
Workload expectations:
  • 0 hours
Method of Delivery: WWW - LearnJCU
Assessment: end of semester exam (40%); assignments (20%); online quiz (40%).

Note: Minor variations might occur due to the continuous Subject quality improvement process, and in case of minor variation(s) in assessment details, the Subject Outline represents the latest official information.