Behavioral Economics

Course Description

This course explores the intersection of psychology and economics, focusing on how cognitive, emotional, and social factors influence individual and collective decision-making. Students will investigate the limitations of traditional economic models that assume fully rational actors, and examine how real-world behavior often deviates from these assumptions. The course blends theoretical insights with practical applications, providing a foundation for designing interventions that improve decision-making in business, policy, and everyday life.

List of Chapters

1. Introduction to Behavioral Economics
2. Cognitive Biases and Heuristics
3. Prospect Theory and Decision-Making Under Risk
4. Time Inconsistency and Self-Control
5. Social Preferences and Behavioural Game Theory
6. Nudges, Choice Architecture, and Policy Applications
7. Behavioural Finance and Market Implications
8. Ethics, Critiques, and Future Directions in Behavioral Economics

Learning Outcomes

• Critically evaluate how psychological factors influence economic decisions at both individual and market levels.
• Identify common cognitive biases and heuristics, and explain their implications in practical settings.
• Apply behavioral economics frameworks to design interventions and policies that guide better choices.
• Interpret behavioral experiments and empirical research to inform evidence-based decision-making.
• Demonstrate ethical awareness and consider global perspectives in applying behavioral economics principles.