Overview

Behavioural Economics is a field of study that examines the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions and how those decisions vary from those implied by classical economic theory. Behavioural economics blends insights from psychology with traditional economic models to better understand decision-making by individuals, firms, and other organizations.Behavioural economics has been applied to various areas including public policy, finance, health economics, and marketing. It helps in designing better economic models, public policies, and business strategies by providing a more nuanced understanding of human behavior.By recognizing that humans are not always rational agents and that they are influenced by a variety of non-economic factors, behavioural economics provides a more accurate and detailed understanding of economic behaviour, paving the way for interventions that can improve individual and societal outcomes.Topics included:Anchoring:Loss aversionConfirmation biasStatus quo biasEndowment effectAvailability heuristicFraming effectChoice architectureDefault biasOverconfidence biasReciprocitySocial proofScarcity biasSunk cost fallacyHeuristicsIrrational escalationHyperbolic discountingProspect theoryNudgeBounded rationalityMental accountingPriming:Halo effectAvailability cascadeZero-sum biasSelf-serving biasAnchoring and adjustmentHot-cold empathy gapIntertemporal choiceSocial discountingDual-process theoryNote: You will get more out of this course if you participate.Update:Now including a brand new collection of Case Studies that examine the economic policies of President Trump following his election on November 6th 2024. These look from a Behavioural Economics viewpoint in particular at:· Tariffs· China's growth· World Economy· Tax cuts· Exporters· Impact on seniors· Exchange rate

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