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Behavioral Economics
Explore how psychology and economics intersect to explain real-world decision-making.
Topics
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Section 1: Foundations: Rationality and Its Limits
Section 2: Heuristics: Mental Shortcuts and Their Biases
Section 3: Cognitive Biases: Systematic Errors in Judgment
Section 4: Prospect Theory: The Psychology of Risk
Section 5: Time Inconsistency and Intertemporal Choice
Section 6: Social Preferences and Strategic Behavior
Section 7: Nudging and Behavioral Policy
Section 8: Applications and Critiques
What you’ll achieve
Understand psychological factors that shape economic behaviour.
Study heuristics, biases, and prospect theory in depth.
Learn how behavioural insights influence policy and business strategy.
Apply concepts to real-world problems in markets and organisations.
Gain interdisciplinary knowledge bridging economics and psychology.
Course overview
Everything you need to excel in Behavioral Economics
Behavioral Economics examines the ways human behaviour deviates from the assumptions of traditional economic theory. The course covers concepts such as heuristics, biases, prospect theory, and the influence of social and emotional factors on economic choices. Students learn how cognitive psychology reshapes our understanding of markets, policy design, and personal finance. Through case studies and applied examples, the course highlights how behavioural insights are used in fields like marketing, public policy, and organisational strategy. Learners will gain both theoretical foundations and practical tools to analyse and predict decision-making in uncertain environments.
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