There are no pre-requisites for this module to be added

The module provides an introduction to a relatively new area in finance by reviewing alternative theories of risk-taking behaviour and identifying the most important biases in information processing that affect our ability to reach rational decisions. The broad themes covered are: the rationality or irrationality of consumers and other economic agents; aspects of economic and consumer life, including managing personal finances, material possessions and shopping (normal, impulse and compulsive); and social and cultural influences, including materialistic values, money and happiness, and advertising. The module examines two inter-related questions: what are the psychological mechanisms of individuals' social and economic behaviours, and how do society and the economy act on the psychology of individuals? Topics to be covered will include individual economic behaviours such as work, buying, saving, giving, and gambling. Economic forces acting on individual behaviour include the monetary system, taxation, advertising, economic growth and development, and special economic conditions such as those experienced by children, or by people in other, less developed economies.

Upon completion of this module you will be able to

LO1: Assess the assumption of “rationality” of consumers and other economic agents.

LO2: Reflect on a number of financial theories and models with respect to their impact on financial decision-making.

LO3: Evaluate the links between investor perceptions of risk and return as it impacts trading behaviours.

LO4: Assess the psychological effects of advertising on investor decision-making.

LO5: Assess the rationality or irrationality of the behaviour of investors.

LO6: Evaluate research on psychological factors regarding attitudes to work and retirement.