Overview

Dear students, please note that I have discontinued this course until further notice due to lack of time. I still intend to complete this course and will revise it entirely once I have time again. Thank you for your understanding and thanks to all of you who have signed up and provided feedback! Behavioral economics is the science of human decisions: How do we make the decisions we make, and why? What factors affect our decisions, and when? When, where, and how are our decisions affected?Behavioral economics studies actual, real-world human behavior and decisions and shows how, when, and where they deviate from the "rational" decisions made by people traditionally assumed in economic theory. Learn about the way people make decisions, why they are not always "rational" (in a traditional economics sense) but how "biased" decisions may still be optimal, even if people apply heuristics ("rules of thumb"). Apply this new knowledge to your own life and be not as easily persuaded by companies and governments, or at least have a better idea about why companies and governments use certain scents, colors, images, and ways to communicate with people. Start first by learning about traditional economics theory. This theory is the basis of all economics research. Then you will learn about behavioral economics foundations and some theories. Following, you will learn about human decision heuristics and biases and how these may affect your daily decisions. Then, you will learn how companies and governments use behavioral economics (sciences) knowledge in the real world. Get acquainted with the tricks used by experts to influence your decisions and choices! Maybe even learn to recognize those and not to be so easily swayed by those techniques anymore? Enjoy the journey diving into a fairly new economics discipline. And good luck! Course outlineIntro: What is behavioral economics (BE)? Locate BE within the social sciences.Economics foundationsUtility, demand and supply, and expected utility theoryHomo economicus: the traditional economics assumptions and key economics conceptsReviewing homo economicus assumptions and defending rationalityBehavioral economics foundationsEarly survey responsesEconomics experiments and gamesHuman decision-makingBounded rationalityDual system theory of thinkingProspect theory of decision-makingProbability-weighting functionValue functionRegret theory of decision-makingThe fourfold pattern of decision-makingDecision heuristics and cognitive biasesHeuristicsRepresentativenessAvailabilityAnchoring & adjustmentAffectCognitive biasesMental accountingHyperbolic discountingLoss aversionEndowment effectScarcity biasAnd many more…Social norms and social preferencesBehavioral economics frameworksEAST Double Diamond MINDSPACECOMBI / COM-BBehavioral economics in actionChoice architecturePolicymakingSome real-world examplesWrap-up: Conclusion and takeaways.

Skills

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