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2010/2011  BA-NCES  Neoclassical Consumption Theory and Economic Psychology

English Title
Neoclassical Consumption Theory and Economic Psychology

Course Information

Language English
Point 7,5 ECTS (225 SAT)
Type Mandatory
Level Bachelor
Duration One Quarter
Course Period First Quarter
Time Table Please see course schedule at e-Campus
Study Board
Study Board for BSc in Service Management
Course Coordinator
  • Christian Knudsen
    Christian Knudsen - Department of Innovation and Organizational Economics
Main Category of the Course
  • Economics, macro economics and managerial economics
Last updated on 29 maj 2012
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 kinds 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
Students not enrolled in BSc in Business Administration & Service Management must document a level in English equal to TOEFL 575, and A level in mathematics equal to Danish level B
Neoclassical Consumption Theory and Economic Psychology
Marking Scale 7-step scale
Censorship Internal examiners
Exam Period October
• Duration of exam: 4 hours • The written exam takes place on CBS computers • Graphs can be written by hand • Aids: Open book, but please note: • Students have access to their personal files (S-drive on CBS network) • Students do NOT have access to Internet, Site Scape/ LEARN, and other services from CBS (except their personal S-drive on CBS network) • Students are not allowed to bring personal electronic devices to the exam, except a non-programmable calculator. • Re-take examinations and make-up examinations are subject to the same regulations as the ones noted above
Prerequisites for Attending the Exam
Course Content

Course description: The course commences 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 starting out 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.

Course purpose: 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 culture 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 student an understanding of how decision making is influenced by these factors, and to give the student some instruments to analyse decision making in a given contextual space.

Teaching Methods
Lectures, case analysis and home assignments
Two individual home assignments will be handed out during the course, and students are strongly recommended to hand in both. Max. 3 normal pages for each home assignment.

Webley, P, et al.: “Economic Psychology of Everyday Life”, Psychology Press UK, 2000

Salvatore, Dominick: “Managerial Economics in a Global Economy”, 6th edition, Thomson-South