A recent nobel prize win and the following newspaper coverage have put behavioral economics at the center of attention for organizations, institutions, and companies alike. By combining the fields of economics and psychology, behavioral economics analyses human behavior and decision-taking with its underlying assumptions and biases.

This course explores the theoretical key concepts (Prospect Theory, Cognitive Biases) of behavioral economics and goes into detail concerning existing and future fields of applications in a variety of different fields.

Course outline:

Session 1: Introduction to behavioral economics

Session 2: Prospect theory

Session 3: Cognitive biases

Session 4: Interim presenations

Session 5: Methodological approaches, nudging & nudge units

Session 6: Final assignment

At the end of the course students will

• know and understand the theoretical key concepts in the field of behavioral economics
• be familiar and able to critically assess existing applications of behavioral economics
• have the skills to employ theoretical concepts to real-life issues

In addition, students will

• work in diverse team-settings
• be able to explain and present complex topics to an audience in an understandable way
• give constructive feedback on others' presentations
• think outside the box to come up with new application fields

As this is a highly interactive class regular attendance is mandatory. In-class discussions play a vital role in the course design and they can only be fruitful if everyone attends and contributes on a regular basis.

In accordance with the current regulations, this course will be taught fully online. Details will be sent out prior to the start of the course.

You may miss one session, but be aware that this will affect your class participation and, as a result, may affect your final grade. If you miss more than one session, you will be deregistered from the course.

The course design is highly interactive, covering current topics and practical applications. It combines lectures about the theoretical key constructs with discussions and presenations on specified topics. 

The final grade of the students participating in the course will be based on the following:

• participation in class as well as quizzes after class: 30% (individual)
• presentation of an assigned nudge application: 20% (team)
• presentation and report of an own nudging idea: 30% (team)
• peer rating: 10% (individual)
• course reflection: 10% (individual)

Final grading:

       ≥ 90%...1

       ≥ 80%...2

       ≥ 70%...3

       ≥ 60%...4

       < 60%...5

SBWL students must have successfully completed course I (Foundations of IB) and II (IB Applications) of the specialization.

Exchange students need a basic understanding of economics (micro- and macro economics).