Behavioral Economics
Course Overview
This course introduces participants to the principles and concepts of behavioral economics, exploring how psychological factors and cognitive biases influence economic decisions. The course examines how real human behavior often deviates from traditional economic theory, and how these insights can be applied to improve decision-making in business, marketing, policy, and organizational management.
Course Objectives
By the end of this course, participants will be able to:
- Understand the foundational concepts of behavioral economics.
- Identify key cognitive biases and heuristics that affect decision-making.
- Analyze how emotions and social factors influence economic behavior.
- Apply behavioral economics principles to design effective interventions and policies.
- Utilize behavioral insights to improve consumer engagement and organizational outcomes.
Who Should Attend
This course is designed for:
- Business managers and strategists
- Marketing and sales professionals
- Policy makers and public administrators
- HR professionals and organizational leaders
- Anyone interested in understanding human decision-making
Course Outline
Introduction to Behavioral Economics
- Overview and comparison with classical economics
- Historical background and major contributors
Cognitive Biases and Heuristics
- Common biases: anchoring, availability, confirmation bias, loss aversion
- How heuristics simplify decision-making
Dual-Process Theory of Thinking
- System 1 (fast, intuitive) vs. System 2 (slow, analytical)
- Implications for economic choices
Emotions and Social Influences
- Role of emotions in decision-making
- Social norms, peer influence, and framing effects
Nudging and Choice Architecture
- Designing environments to influence behavior
- Examples of nudges in business and policy
Applications of Behavioral Economics
- Consumer behavior and marketing
- Behavioral finance and investment decisions
- Employee motivation and organizational behavior
- Public policy and health interventions
Evaluating Behavioral Interventions
- Experimental methods and behavioral data analysis
- Ethical considerations