Behavioural Decision Science

optional courses

The aims of this course are to introduce and deepen PhD students’ understanding of quantitative theories of judgements, decision-making, behavioural science and cognitive psychology.

Covered topics in the Behavioural Decision Science module (Indicative):

Foundations of Cognitive Science and Psychology; Memory, Categorisation and Identification of Perceptual Information; Causal Reasoning; Decision-making Context; Behavioural Economics; Normative and Descriptive Theories of Decision Making; Construction of Preferences; Perception of Risk; Multiattribute Decisions; Preference formation and justification in choice; Morality and Utility; Behavioural Forecasting; Financial Decision-Making, Emotions and Decision-Making, Learning and Decision-Making,

This course will explore theories and research methods in the field of decision-making, judgements, behavioural economics and cognitive psychology. Moreover, the course will promote and encourage critical thinking (and discussions) about fundamental cognitive processes such as memory, categorisation, judgement and choice.
The students will critically examine theoretical models of judgement and decision-making, behavioural economics, categorisation and memory. The course will also cover recent developments in behavioural science theories, as well as the impact of experience and categorisation on preference formation and choice. The course will also introduce students to applications of behavioural science, judgement and decision-making research in areas such as finance.

Indicative (PDF papers will be distributed prior lectures):

Compulsory reading:

Braisby, N., & Gellatly, A. (2005/2012). Cognitive psychology. Oxford University Press

Eysenck, M.W., & Keane, M.T. (2010). Cognitive psychology: A student's handbook (6th Edition). Psychology Press.

Informative reading:

Eysenck, M. (2012). Fundamentals of cognition (2nd Edition).

Psychology Press.

Fiedler, K., & Juslin, P. (2006). Information sampling and adaptive cognition. Cambridge University Press.

Hertwig, R., Barron, G., Weber, E. U., & Erev, I. (2004). Decisions from experience and the effect of rare events in risky choice. Psychological Science, 15, 534–539.

Kahneman, D. (2003). A perspective on judgment and choice: Mapping bounded rationality. American Psychologist, 58, 697–720.

Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47, 263–291.

Kusev, P., van Schaik, P., Ayton, P., Dent, J., & Chater, N. (2009). Exaggerated risk: Prospect theory and probability weighting in risky choice. Journal of Experimental Psychology: Learning, Memory, and Cognition, 35, 1487-1505.

Kusev, P., Ayton, P., van Schaik, P., Tsaneva-Atanasova, K., Stewart, N., & Chater, N. (2011). Judgments relative to patterns: How temporal sequence patterns affect judgments and memory. Journal of Experimental Psychology: Human Perception and Performance, 37, 1874-1886.

Kusev, P., Tsaneva-Atanasova, K., van Schaik, P. & Chater, N. (2012). Modelling judgement of sequentially presented categories using weighting and sampling without replacement. Behavior Research Methods. DOI 10.3758/s13428-012- 0218-9

Kusev et al. (2017). Understanding Risky Behavior: The Influence of Cognitive, Emotional and Hormonal Factors on Decision-Making under Risk. Frontiers in Psychology. 8, 102. doi: https://doi.org/10.3389/fpsyg.2017.00102

Kusev, P., van Schaik, P., Tsaneva-Atanasova, K., Juliusson, A., & Chater, N. (2018). Adaptive anchoring model: how static and dynamic presentation of time series influence judgments and predictions. Cognitive Science. 42, 77-102.

Levitin, D. J. (2002). Foundations of Cognitive Psychology: Core Readings. MIT Press.

Manktelow, K. (2012). Thinking and reasoning: An introduction to the psychology of reason, judgment and decision making (2nd Edition). Psychology Press.

Matlin. M. (2009). Cognitive Psychology (7th Edition; International Student Version). Wiley.

Stewart, N., Chater, N., & Brown, G. D. A. (2006). Decision by sampling. Cognitive Psychology, 53, 1–26.

Tversky, A., & Kahneman, D. (1992). Advances in prospect theory: Cumulative representation of uncertainty. Journal of Risk and Uncertainty, 5, 297–323.

On successful completion of the course, students will be able to:

(i) Demonstrate an in-depth knowledge of decision and cognitive theories in psychology. (P8S_WG)

(ii) Identify how context, experience, expertise, memory, emotions influence categorisation and choice behaviour. (P8S_WG)

(iii) Critically evaluate research in cognitive psychology.(P8S_KK)

(iv) Identify how recent developments in behavioural science find applications in
areas such as finance, health, and consumer behaviour. (P8S_UW)

The assessment consists of a 1500-word essay (critical literature review) which is worth 100% of the final mark. Critical thinking skills will be assessed formatively during the lectures where pertinent primary literature is analysed and discussed. Developing a structured and principled critical essay plan will be assessed formatively.