Why is observed behaviour, ranging from consumer choices to bank managers investment decisions, often not in accordance with the predictions of standard economic models? What are the most important sociological and psychological theories with respect to the division of labour within the household, which policies are effective in crime prevention and reduction, and what are the causes and effects of different forms of social inequality? Sociologists, psychologists and economists use different frameworks to address these questions. In this course, students will become acquainted with the most important theories in sociology and psychology, in relation to its relevance for economic science.
The focus in this course is on sociological and psychological concepts and theories, especially relevant for economists. Both sociology and psychology as disciplines have much in common with economics, but there are also complementarities. For instance, although the rational choice approach is used in both sociology and economics, the former tend to focus on human behavior driven by norms and values and embedded in the structures, institutions and networks of society, while the latter tend to focus on how individuals respond to (financial) incentives. With respect to the interface of psychology and economics, recently there emerged a burgeoning field known as behavioural economics, where the study of psychology is related to the economic decision-making processes by individuals. Behavioural economics questions whether utility or profit maximising behaviour adequately describes people's real behaviour. Instead, it uses insights from psychology, especially heuristics (decision-making based on rules of thumb) and framing (decision-making shaped by configurations), to explain why and how actual behaviour diverges from strictly maximising behavior. What are the underlying psychological factors underpinning bounded rationality, systematic biases, procrastination, hyperbolic discounting, etc. in decision making, and to what extent can it explain why people sometimes make irrational decisions?
This course is meant to provide a broad, introductory, overview of sociological and psychological theories most relevant for economics. It provides a first introduction to the major themes studied in sociology - social inequality, trust and trustworthiness, social norms, social cohesion (order and cooperation) and social change - and in psychology - understanding the role of mental functions in individual and social behaviour. Connected to these broad themes, a variety of problems can be identified, which are also studied by economists, but often without explicitly taking into account the insights of sociology and psychology. In such a problem-based setting, students will be familiarised with the most important sociological and psychological approaches and their methods of analysis. Special attention will be paid to the role of markets, organisations, social networks, and to norms and values for the question of cohesion and coordination in modern society.
Learning objectives
At the end of the course the student is able to:
- understand concepts and methods used in psychology, sociology and economics;
- situate these theories and models in a wider interdisciplinary context
- assess the common ground and complementarity of theories and models in psychology, sociology and economics;
- adopt an integrated approach of different disciplines to social problems.
Format
Lectures (two hours per week) and tutorials (two hours per week).
Assessment method
- Written exam (60% of the final grade);
- Assignment (40% of the final grade).
The written test is one exam that is composed of open (essay questions) and closed questions (e.g., true/false, multiple choice).
Effort requirement
Students are required to be present in 80% of lectures and tutorials, and actively participate in these lectures and tutorials.
Place of the course within the curriculum
Introduction course for the bachelor students Economics and Business Economics with approved optional minor Social Sciences.
In case online access is required for this course and you are not in the position to buy the access code, you are advised to contact the course coordinator for an alternative solution. Please note that access codes are not re-usable meaning that codes from second hand books do not work, as well as access codes from books with a different ISBN number. Separate or spare codes are usually not available.
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