IB9AG-15 Judgement & Decision Making
Introductory description
This module outlines the key principles and phenomena underlying human judgement and decision making.
Module aims
This module outlines the key principles and phenomena underlying human judgement and decision making. It aims to encourage students to see how the insights from this work can
(i) Understand the origins of rational and irrationality in financial decision makers, and financial markets.
(ii) Help improve their own financial decision-making, judgements and predictions, by providing an awareness of biases and pitfalls.
Provide a broader understanding of decision-making throughout the finance industry, including strategic and managerial decision-making
Outline syllabus
This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.
[1] The nature of rationality.
[2] Theoretical perspective on human judgement.
[3] The psychology of value and utility.
[4] Decision making under certainty.
[5] Decision making under risk.
[6] Decisions and time: Should we discount the future?
[7] Judgement.
[8] Confidence and expertise.
[9] Decision making in markets, groups and society.
Learning outcomes
By the end of the module, students should be able to:
- Understand the research methods and results of research on human judgement and decision making and should be able to - critically evaluate experimental research
- Understand the research methods and results of research on human judgement and decision making and should be able to - understand and apply a range of theoretical perspectives on human decision making
- Understand the research methods and results of research on human judgement and decision making and should be able to - identify key judgement and decision making biases
Indicative reading list
Reading lists can be found in Talis
Subject specific skills
Critical evaluation of experimental data; assessing the external validity of lab results.
Critical reflection on the scope and limits of human rationality.
Transferable skills
Demonstrate logic and justification within skills of argument construction.
Understand, and be able to present orally and in writing their understanding of the field of judgement and decision making and its relevance to finance.
Demonstrate confidence in discussing both orally and in writing theoretical and empirical issues of practical relevance (integrating theory and practice).
Demonstrate business relevant presentation skills
Study time
| Type | Required |
|---|---|
| Lectures | 9 sessions of 2 hours (12%) |
| Seminars | 8 sessions of 1 hour (5%) |
| Private study | 124 hours (83%) |
| Total | 150 hours |
Private study description
Self study to include preparation for assessment and pre-reading for lectures and seminars
Costs
No further costs have been identified for this module.
You do not need to pass all assessment components to pass the module.
Assessment group A1
| Weighting | Study time | Eligible for self-certification | |
|---|---|---|---|
Assessment component |
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| 3000-Word Essay | 80% | Yes (extension) | |
Reassessment component is the same |
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Assessment component |
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| Group Seminar/Presentation | 20% | No | |
Reassessment component is the same |
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Feedback on assessment
Individual feedback on assessed essay via online coursework feedback system. Feedback will be provided to groups on their presentation.
Pre-requisites
N/A
Courses
This module is Optional for:
- Year 1 of TIBS-N4N6 MSc in Accounting and Finance
- Year 1 of TIBS-N300 MSc in Finance
- Year 1 of TIBS-N1F5 Postgraduate Taught Business and Finance
- Year 1 of TIBS-LN1J Postgraduate Taught Finance and Economics