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Behavioral Economics: Psychology of Decisions

Explore how cognitive biases, heuristics, and emotions shape economic decisions. 6 modules covering Prospect Theory, nudge theory, market anomalies, and real-world applications in finance, health, and policy.

6 modules 30 lessons ~8h AI voice coach

Course Outline

1

Foundations of Behavioral Economics

5 lessons

Discover how behavioral economics challenges the rational actor model — from Kahneman's dual-process theory to the concept of bounded rationality.

What is Behavioral Economics?
Rationality vs Reality
Kahneman & Prospect Theory
System 1 vs System 2
Bounded Rationality
2

Cognitive Biases

5 lessons

Examine the most important cognitive biases that shape economic decisions — anchoring, availability, confirmation bias, loss aversion, and overconfidence.

Anchoring
Availability Heuristic
Confirmation Bias
Loss Aversion
Overconfidence
3

Prospect Theory Deep Dive

5 lessons

Go deeper into the mathematics and applications of Prospect Theory — from expected utility to probability weighting and the powerful effects of framing.

Expected Utility Theory
Prospect Theory in Detail
The Value Function
Probability Weighting
Framing Effects
4

Nudge & Choice Architecture

5 lessons

Explore how the design of choice environments shapes decisions — from defaults and libertarian paternalism to real-world nudge policies and their ethical implications.

Choice Architecture
Default Options
Libertarian Paternalism
Nudge in Public Policy
Ethical Concerns
5

Market Anomalies

5 lessons

Discover how behavioral biases create persistent anomalies in financial markets — from the equity premium puzzle to herding, bubbles, and behavioral portfolio theory.

The Equity Premium Puzzle
The Disposition Effect
Herding & Bubbles
Calendar Anomalies
Behavioral Portfolio Theory
6

Applications of Behavioral Economics

5 lessons

Apply behavioral economics to finance, marketing, health, environment, and product design — turning theory into practical tools for better outcomes.

Behavioral Finance
Behavioral Marketing
Behavioral Health Economics
Environmental Behavior
Designing Better Products