Behavioural Economics in Action
Behavioural Economics in Action
Learn to use principles and methods of behavioural economics to change behaviours, improve welfare and make better products and policy.
Overview
How can we get people to save more money, eat healthy foods and engage in healthy behaviours, and more generally make better choices? There has been a lot written about the fact that human beings do not process information and make decisions in an optimal fashion. This course builds on much of the fascinating work in the area of behavioural economics and allows the student to develop a handson approach by learning its methods and more importantly, how it can be harnessed by suitably designing contexts to “nudge” choice. In three modules, students will be able to a) explain and interpret the principles underlying decisionmaking and compare the nudging approach to other methods of behaviour change, b) learn how to critique, design and interpret the results of experiments; and c) design nudges and decisiontools to help people make better decisions. Understanding experimental design and interpretation is central to your ability to truly use behavioural economics and will set you apart from people who merely know about the behavioural research. Hence, after the first two weeks of understanding the basic principles, we will devote two weeks to studying experimental design and analysis, and the final two weeks to understanding processes for designing nudges and for helping people make better decisions. Students will also witness and participate in weekly topical debates on various topics like “does irrationality impact welfare?” or “What strategy is better for improving welfare – nudging or education?” If you’ve been fascinated with the buzz surrounding behavioural economics but are not sure how to actually use it, this course is for you.
University of Toronto Dilip Soman 6 weeks 4 5 hours per week 06Oct to 16Nov2014 Requirements 2 x exam, debate reflection, written project 60% to Pass Grade 80% Pass
Dana B. Taylor
https://www.edx.org/course/university-torontox/university-torontox-be101x-behavioural-2616#.U-27EEt97wL
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Behavioural Economics in Action
Syllabus Principles Week 1: Key Concepts and Choice Architecture ● Topics Covered: What is Behavioral Economics and how is Nudging different from other techniques of behaviour change; What is rational choice; A theory of decision points Week 2: Major Principles of Behavioural Economics ● Topics Covered: Mental accounting, Choice overload, Selfcontrol, Effect of payment mechanism on spending Methods Week 3: Experiments ● Topics Covered: The basics of experiments (terminology, design), Analysis of results, Lab and field studies, Examples of experiments Week 4: Tools for understanding preferences ● Topics Covered: Understanding intuition, Decision analysis, Judgment bootstrapping, Educating intuition, Developing a consumption vocabulary Applications Week 5: Guide to Nudging ● Topics Covered: Nudging – A progress report, Getting started, Nudger’s toolkit, A practitioner’s guide, Introduction to the Nudge Challenge Week 6: Decision Aids and Wrapup ● Topics Covered: Some recent examples, decision aides, disclosure and smart disclosure Dana B. Taylor
https://www.edx.org/course/university-torontox/university-torontox-be101x-behavioural-2616#.U-27EEt97wL
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Behavioural Economics in Action
Grading & Logistics
Results
1) Two short exams (30% each): End of Weeks 3 and 6. 2) A reflection on the debates (20%): At the end of Week 6, students will be asked to complete a very short reflection piece.This assignment will be selfassessed. 3) The Nudge Challenge submission and peer grading (20%): At the end of the course, students will be given a challenge and asked to design a nudge to help tackle that challenge. This assignment will be peer assessed. Students who complete all these three components and achieve a score of 60% on the total assessment will earn a certificate of accomplishment.
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Quiz 1: 19/30 Quiz 2: 21/30 Debate: 8/8 Assignment: 18/18
Grade: 80% Pass
Dana B. Taylor
https://www.edx.org/course/university-torontox/university-torontox-be101x-behavioural-2616#.U-27EEt97wL
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