Behavioural Economics (ECON2060)

Course overview

Examines approaches to economics of consumers and firms based upon applications of psychology and studies of actual behaviour in complex, uncertain and rapidly changing environments. Examines the policy implications of these contributions and includes coverage of recent work on the economics of happiness. The significance of behavioural economics was acknowledged by Nobel Prizes awarded to Herbert Simon (1978) and Daniel Kahneman (2002) and it has become widely taught in the past decade. The unit will be taught in a way that aims to develop critical thinking skills rather than focusing on mathematical techniques.

In the past two decades there has been an explosion of interest in behavioural economics, largely based on work in the USA that has sought to refashion economic theory in the light of a growing body of findings that suggest actual behaviour is at odds with how the 'rational economic agent' is expected to behave. This course will present the modern understanding of how humans truly behave in uncertain, changing, and complex environments, and our understanding of how and why it may depart from the rational agent model. In some contexts new models have been developed to understand these phenomena, and these will be used to quantitatively understand the difference between "rational" choices and more realistic human decision making. The School of Economics at the University of Queensland has members of staff who have been making contributions in both behavioural and evolutionary economics for many years and those of its staff who work in these areas tend to bring the two approaches together as a whole. Research from recent academic papers in behavioural economics will be introduced and dissected. This course provides a unique opportunity to receive an introduction to this way of looking at economics.

Course requirements

Assumed background

Introductory Microeconomics

Prerequisites

You'll need to complete the following courses before enrolling in this one:

ECON1010 or 1011

Recommended prerequisites

We recommend completing the following courses before enrolling in this one:

ECON1020

Incompatible

You can't enrol in this course if you've already completed the following:

ECON7480

Course contact

Course staff

Timetable

The timetable for this course is available on the UQ Public Timetable.

Additional timetable information

It is important that you attend tutorials for this course.

Lectures commence in Week 1.

Tutorials commence in Week 2.

Important Dates:

·        Public Holidays: Fri 18 April (Good Friday), Mon 5ﾠMay (Labour Day).

·        Mid-Semester Break: 21 April - 25ﾠApril. Semester 1 classes recommence on Mon 28ﾠApril.

Please see the Learning Activities section of this Course Profile for the timetabling implications of public holidays. The timetable is published through the UQ Public Timetable found in the APPs section of myUQ. Students should refer to the timetable prior to the commencement of classes to ensure that they have the most up to date information, as from time to time late room changes may occur.

Aims and outcomes

This course aims to develop a pluralistic approach to learning about economics by introducing the literature of behavioural economics and contrasting its philosophical and policy perspectives with mainstream economics. Importantly, this course does not promote behavioural economics as a replacement to classical economics, but rather as a complement. A primary objective is to critically evaluate the use of behavioural economics in understanding decision-making. Therefore, the course structure involves comparing (neo)classical economic models and behavioural approaches for each topic, enabling students to form their own judgements. A secondary aim of this course is to introduce students to research in economics. Weekly activities include discussions on published academic papers during the lectures and tutorials. A reading schedule of these papers will be available on Blackboard. The latter part of the course delves into specialised topics in both mainstream and behavioural economics, as well as a guest lecture from industry or government. This focus is reflected in the major assessment, a research proposal for an original behavioural economics project. Students are encouraged to actively engage in tutorials, designed as discussions/debates, offering a contrast to the typical problem/solution format of most economics courses.

Learning outcomes

After successfully completing this course you should be able to:

Assessment

Assessment summary

Assessment details

Online Tests

• Online

Mode

Written

Category

Quiz

Weight

40% Each test is worth 20%

Due date

Test 1 (20%) 8/04/2025 - 9/04/2025

Test 2 (20%) 6/05/2025 - 7/05/2025

Each test contains a one-hour timer within a 24-hour window that opens at 9:00am on Tuesday and closes at 9:00am on Wednesday.

Other conditions

Time limited.

See the conditions definitions

Learning outcomes

L01, L02, L03, L04

Task description

Submission guidelines

The test is posted and answered on Blackboard by due date and time.

Deferral or extension

You may be able to apply for an extension.

The maximum extension allowed is 7 days. Extensions are given in multiples of 24 hours.

Requests for the granting of extensions must be submitted through my.UQ: Applying for an extension - my.UQ - University of Queensland with supporting documentation before the submission due date/time. If an extension is approved, the new agreed date for submission will be noted on the application and the student notified through their student email. Extensions cannot exceed the number of days you suffered from a medical condition, as stated on the medical certificate.

This assessment has a maximum extension of 7 days (including weekend days) to ensure timely feedback to other students.

The following are not grounds for an extension, including but not limited to:

• computer or internet problems;
• holiday arrangements;
• misreading an assignment due date or time;
• unexpected events causing the loss of a few hours of study time close to the due date;
• difficulty studying effectively or adjusting to the demands of university life;
• visa or financial problems;
• everyday levels of stress and/or anxiety associated with employment and/or studying; or
• ordinary family events or commitments.

Late submission

Exams submitted after the end of the submission time will incur a late penalty.

Where an extension has not been previously approved, the following penalties apply in alignment with the UQ Examinations Procedure. 

• Less than 5 minutes late: 5% penalty
• From 5 minutes to less than 15 minutes late: 20% penalty 
• More than 15 minutes late: 100% penalty 

Research Proposal Snapshot and Peer Review

• Online

Mode

Written

Category

Paper/ Report/ Annotation, Participation/ Student contribution

Weight

10% - Snapshot 7%, Peer Review 3%

Due date

Submission of Research Proposal Snapshot 16/05/2025 5:00 pm

Submission of 3 Peer Reviews 23/05/2025 5:00 pm

Learning outcomes

L01, L02, L03, L04

Task description

Submission guidelines

Submission of both the Research Proposal Snapshot and the three Peer Reviews is through Turnitin. More details will be provided on Blackboard.

Deferral or extension

You cannot defer or apply for an extension for this assessment.

Due to the peer review requirements and to ensure a fair distribution of peer feedback, there are NO late submissions or extensions permissible for these tasks.

Late submission

You will receive a mark of 0 if this assessment is submitted late.

Due to the peer review requirements and to ensure a fair distribution of peer feedback, there are NO late submissions or extensions permissible for these tasks.

Behavioural Economics Research Proposal

• Online

Mode

Written

Category

Paper/ Report/ Annotation

Weight

50%

Due date

9/06/2025 1:00 pm

Learning outcomes

L01, L02, L03, L04

Task description

Submission guidelines

Submission via Turnitin on Blackboard

Deferral or extension

You may be able to apply for an extension.

The maximum extension allowed is 14 days. Extensions are given in multiples of 24 hours.

Requests for the granting of extensions must be submitted through my.UQ: Applying for an extension - my.UQ - University of Queensland with supporting documentation before the submission due date/time. If an extension is approved, the new agreed date for submission will be noted on the application and the student notified through their student email. Extensions cannot exceed the number of days you suffered from a medical condition, as stated on the medical certificate.

This assessment has a maximum extension of 14 days (including weekend days) to ensure timely feedback to other students.

The following are not grounds for an extension, including but not limited to:

• computer or internet problems;
• holiday arrangements;
• misreading an assignment due date or time;
• unexpected events causing the loss of a few hours of study time close to the due date;
• difficulty studying effectively or adjusting to the demands of university life;
• visa or financial problems;
• everyday levels of stress and/or anxiety associated with employment and/or studying; or
• ordinary family events or commitments.

Late submission

A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.

Course grading

Full criteria for each grade is available in the Assessment Procedure.

Additional course grading information

A student’s final overall end of semester percentage mark will be rounded to determine their final grade.

For example, 64.5% rounds to 65%, while 64.4% rounds to 64%.

Supplementary assessment

Supplementary assessment is available for this course.

Additional assessment information

Plagiarism

The School of Economics is committed to reducing the incidence of plagiarism. Further information on plagiarism and how to avoid an allegation of plagiarism is available in this course profile under Policies & Procedures. Please refer to theﾠAcademic Integrity Module (AIM). It is strongly recommended that you complete the AIM if you have not already done so.

Learning resources

You'll need the following resources to successfully complete the course. We've indicated below if you need a personal copy of the reading materials or your own item.

Library resources

Find the required and recommended resources for this course on the UQ Library website.

Additional learning resources information

We will discuss a number of published academic papers during the course. A list with a reading schedule will be posted on Blackboard, with papers added gradually during the semester depending on the input of students. It is important that students read these papers before they are discussed in class.

Video and audio recordings of lectures are typically posted on Blackboard within a day of the class occurring. Additional links to videos and articles, etc. will be posted in the relevant lecture or tutorial folder.

Learning activities

The learning activities for this course are outlined below. Learn more about the learning outcomes that apply to this course.

Policies and procedures

University policies and procedures apply to all aspects of student life. As a UQ student, you must comply with University-wide and program-specific requirements, including the:

• Student Code of Conduct Policy
• Student Integrity and Misconduct Policy and Procedure
• Assessment Procedure
• Examinations Procedure
• Reasonable Adjustments - Students Policy and Procedure

Learn more about UQ policies on my.UQ and the Policy and Procedure Library.