HAS NCES - Neoclassical Consumption theory and Economic Psychology (Q1)

Faculty
Center for Tourism and Culture Management (TCM)

Course Coordinator
Lise Lyck

Prerequisite/progression of the course

The course is part of the BSc. in Business Administration & Service Management at CBS. Nevertheless, students from other universities may take this course as an elective, according to the prevailing rules. The students must document a level in English equal to TOEFL 575 and a level in mathematics equal to a Danish level B.

Aim of the course

Tourism and culture consumption decisions are influenced by both rational and bounded rationality decision-making. Both economic and economic psychology approaches are of importance to service decision-making, and especially in relation to tourism and cultural goods. Consumer preferences are to a great extent related to the consumer’s life, age and income, as well as to socio-economic factors. The purpose of this course is to give the students an understanding of, how decision-making is influenced by these factors, and to give the students some instruments to analyse decision-making in a given contextual space.

Course content, structure and teaching

The course begins with a scientific, methodological perspective based on economy as seen by Adam Smith and by Bentham (deductive versus inductive). Furthermore, the course includes different rationality concepts, e.g. the rational axiomatic explanation in economics is confronted with the behavioural explanations beginning from social norms and feelings. The neoclassical consumption theory and the consumer’s four choices are presented, and the decision-making theory is dealt with. This is followed by the economic psychology approach to decision-making.

Learning Objectives

To understand and gain knowledge of rationality concepts
To be able to use both a deductive and an inductive approach to decision-making
To develop skills in neoclassical consumption theory including the consumer’s four fundamental choices
To be able to make indifference curve analyses under restrictions
To apply neoclassical consumption theory to different kind of preferences
To gain a fundamental understanding of economic psychology
To analyse consumption decision-making for different age groups
To apply neoclassical consumption theory as well as economic psychology to tourism and culture decisions
To characterise decisions made by people in different phases of life.

Teaching methods

Lectures, case analyses and home assignments.

Examination

Four hours individual, written exam with open books, which counts for 100% of the final grade.

Course literature

Webley, P, et al.: “ Economic Psychology of Everyday Life”, Psychology Press UK, 2000
Salvatore, Dominick: “Managerial Economics in a Global Economy”, 5th edition, Thomson-South Western College, 2004
Course Compendium.

Last updated by The International Office 17/05/2009