Behavioral Economics: Understanding Bias and Choice Architecture

Why do people often make decisions that seem contrary to their best interests? Behavioral economics blends psychology and traditional economics to answer this fundamental question. This course provides a comprehensive introduction to the field, equipping you with the tools to analyze how heuristics and biases shape human behavior. By the end of this course, you will be able to identify common cognitive biases, understand the mechanisms behind them, and analyze how these biases shape everything from personal finance to public policy. What you'll learn: * Understand the core principles and foundational concepts that bridge psychology and classical economic theory. * Identify common heuristics and cognitive biases, such as anchoring, loss aversion, and availability bias. * Apply the Prospect Theory framework to model decision-making under uncertainty and risk. * Analyze how choice architecture and Nudge Theory can influence consumer behavior and policy design. * Practice dissecting real-world examples, including applications in finance, health, and the psychology of scarcity. The course begins by establishing the foundational definitions and historical context of the field, then moves into detailed explanations of major biases and models, culminating in practical application exercises. This course is designed for absolute beginners interested in psychology, economics, or decision science. No prior knowledge of advanced statistics or economic theory is required. Start reading today and transform the way you view human decision-making.