Programme Content
A History of Behavioral Economics and Prospect Theory
Analyze the evolution of economics from Classical economics (e.g., Adam Smith) to present day, and where behavioral economics began to flourish.
Understand the late 1970s inflection point that introduced psychology to the economic decision-making model.
Dissect systematic bias and describe the most cited, ground-breaking behavioral economy theory: prospect theory.
Explore examples of prospect theory’s importance in our personal lives and when running a business.
Sophisticated Choices and Self-Control
Explain the influence of intertemporal components in our choices and how they can provoke non-standard behavior (such as addictions, credit card dependence, etc.).
Formulate mathematical models that explain phenomena such as procrastination and overindulgence.
Visualize examples of how self-control problems can lead to bad decision-making.
Apply Choice knowledge in a way that modifies behavior, improving the health of both your business and people around you.
Fairness
Compare the standard rational economics assumption that humans are self-interested and the behavioral economics propositions that humans are altruistic.
Articulate why thinking only in financial incentives might not be wise and how fairness is compatible with successful business.
Analyze why and when it is socially accepted to charge fees or surcharges, and more generally to use standard economic pricing mechanisms.
Explore the importance of social norms and pressure, reciprocity, and distributive vs procedural justice.
The Psychology of Incentive
Discover through a Qualtrics-based exercise what kind of motivational treatments are most effective in making someone execute a given task.
Recognize the many possible approaches to understanding motivation beyond behavioral economics.
Create a company culture built on solid psychological principles.
Biased Belief
Recognize how information interventions over biased beliefs can modify mindsets and be potential sources of new standards in decision-making.
Learn how nearly everyone exhibits common biases, such as projection bias and “winner’s curse.”
Identify some of the most important biases, such as survivorship bias and overconfidence, and how they influence business decision-making.
Inattention
Discover how our attention is limited and why this leads us to make important decision errors.
See how something as simple as not paying attention to a number’s digits can dramatically change economic markets’ function.
Understand how inattention works in a competitive market and grapple with the ethics of competing for consumer attention.
Learn the challenges and opportunities in addressing human rights abuses in cybertechnology.
Discrimination
Measure and identify the sensitive topic of discrimination through five distinctive methods.
Learn how standard economics categorizes discrimination into one of two models, statistical and taste-based.
Understand how psychology can deepen our understanding of how discrimination works and how we can combat it.
Nudging
Apply basic principles of good choice architecture and the way we can influence people’s behavior.
Discuss examples of nudging, such as putting numbers into context and smart engineering/design.
Detect examples of nudges and the opposite “sludge” in the real world and apply nudges to your business or career.
