Behavioral Economics Course

Lesson 1 • Classical vs. Behavioural Economic Models

Contrasts the rational-agent model with bounded rationality. Sets the conceptual baseline for all subsequent behavioural frameworks.

Lesson 2 • Research Methods in Behavioural Economics

Surveys experimental, field, and survey-based methods used to study behaviour. Equips students to evaluate evidence quality in behavioural studies.

Lesson 3 • History and Key Pioneers

Traces the discipline from early psychology-economics intersections to Nobel-recognised research. Contextualises why behavioural insights gained mainstream acceptance.

Lesson 1 • Anchoring and Adjustment Bias

Analyses how initial reference points distort final judgments. Demonstrates anchoring effects in negotiation, pricing, and forecasting.

Lesson 2 • Overconfidence and Optimism Biases

Covers miscalibration of confidence and unrealistic optimism. Links these biases to planning failures and risk underestimation.

Lesson 3 • Confirmation Bias and Motivated Reasoning

Explores selective information processing driven by prior beliefs. Shows how motivated reasoning undermines objective analysis.

Lesson 4 • Availability and Representativeness Heuristics

Examines two foundational heuristics and the biases they generate. Connects each heuristic to documented decision errors in professional contexts.

Lesson 1 • The Prospect Theory Value Function

Explains the S-shaped value function defined over gains and losses. Students interpret diminishing sensitivity and reference-point dependence.

Lesson 2 • Probability Weighting and Decision Weights

Covers the nonlinear transformation of probabilities in prospect theory. Explains overweighting of small probabilities and underweighting of large ones.

Lesson 3 • Mental Accounting and Framing Effects

Shows how people categorise outcomes into separate mental accounts. Connects framing to prospect theory predictions about choice reversals.

Lesson 4 • Loss Aversion Across Domains

Quantifies loss aversion and traces its effects across consumer, financial, and workplace contexts. Builds ability to spot loss-aversion-driven behaviour.

Lesson 1 • Present Bias and Procrastination

Defines present bias as disproportionate weighting of immediate rewards. Links present bias to procrastination and under-saving behaviour.

Lesson 2 • Intertemporal Choice in Financial Decisions

Applies time-preference models to saving, borrowing, and investment behaviour. Students connect theory to real financial decision patterns.

Lesson 3 • Self-Control Strategies and Commitment Devices

Examines how individuals and institutions use precommitment to overcome present bias. Provides a toolkit of self-control mechanisms applicable in policy and product design.

Lesson 1 • Social Norms and Conformity

Distinguishes descriptive from injunctive norms and their influence on behaviour. Shows how norm salience can be leveraged to shift behaviour at scale.

Lesson 2 • Identity, Group Membership, and Choice

Explores how social identity shapes preferences and constrains choices. Applies identity economics to workplace motivation and consumer behaviour.

Lesson 3 • Cooperation, Competition, and Public Goods

Analyses free-rider problems and conditions that sustain cooperation. Equips students to design incentive structures that promote collective action.

Lesson 4 • Fairness and Inequity Aversion

Introduces models where agents dislike unequal outcomes even when advantageous. Grounds fairness preferences in experimental ultimatum and dictator game evidence.

Lesson 1 • Evaluating Nudge Effectiveness

Provides criteria and methods for assessing whether nudges achieve intended outcomes. Covers effect size benchmarks, unintended consequences, and scalability.

Lesson 2 • Principles of Choice Architecture

Defines choice architecture and its core levers: defaults, framing, and salience. Establishes the ethical and practical rationale for libertarian paternalism.

Lesson 3 • Salience, Simplification, and Feedback

Shows how making information prominent and simple increases its behavioural impact. Connects feedback loops to sustained behaviour change.

Lesson 4 • Social Proof and Normative Messaging

Applies social norm research to communication design. Students craft normative messages that shift behaviour through peer comparison.

Lesson 1 • Motivation Beyond Monetary Incentives

Examines intrinsic motivation, purpose, and recognition as complements to pay. Challenges the assumption that financial incentives always dominate.

Lesson 2 • Incentive Design and Behavioural Responses

Analyses how incentive structures interact with cognitive biases and social preferences. Students identify design flaws that produce unintended behavioural outcomes.

Lesson 3 • Decision Quality and Debiasing in Teams

Covers group decision-making failures and structured techniques to improve judgment. Equips managers to build debiasing practices into team processes.

Lesson 4 • Behavioural Barriers to Organisational Change

Identifies cognitive and social obstacles that slow adoption of new processes. Provides behavioural strategies to overcome resistance and inertia.

Lesson 1 • Testing and Iterating Policy Interventions

Covers experimental and quasi-experimental methods for evaluating behavioural programmes. Emphasises iterative refinement based on evidence.

Lesson 2 • Ethics and Governance of Behavioural Policy

Examines transparency, consent, and accountability requirements for behavioural interventions. Prepares students to navigate ethical scrutiny in public and private sectors.

Lesson 3 • Scaling and Sustaining Behavioural Programmes

Addresses challenges of moving from pilot to population-level implementation. Covers habituation, adaptation, and long-term behaviour maintenance.

Lesson 4 • Behavioural Diagnosis of Policy Problems

Introduces a structured process for identifying behavioural barriers underlying policy failures. Connects diagnosis to targeted intervention selection.