The course consists of two main parts. The first part introduces core theories and concepts of behavioral economics. The second part will focus on applications of behavioral economics using cases and guest lectures from business, illustrating how modern businesses can utilize insights of behavioral theories to generate sustainable value creation.
A non-exhaustive list of topics include:
- Choice architecture, status-quo and default effects.
- Loss aversion, Prospect theory, and framing effects.
- Heuristics and biases in consumer and managerial decision-making.
- Time preferences.
- Performance measures, incentives and motivation.
- Decision making under uncertainty.
- Frontiers of behavioral insights. Interaction of behavioral insights with new technologies (e.g. mobile apps and big data possibilities).