Foundations in Behavioral Economics

In this course, students delve into the foundations of behavioral economics. Markets’ ability to deliver efficient outcomes and improve well-being depends on how effectively individuals respond to economic incentives. When people systematically deviate from rational, utility-maximizing behavior, policy can play a key role in improving decision-making. This course introduces behavioral economics, which integrates psychology into economic analysis to explain such deviations and their policy implications. Students learn core behavioral concepts—like present bias, loss aversion, and social preferences—and apply them across policy areas such as health, education, and finance.

Throughout the course, students develop behaviorally informed policy research questions and learn to translate behavioral insights into empirically credible, policy-relevant research designs, culminating in a written and presented research proposal.