Behavioral Economics Training Course: Understanding The Psychology Of Economic Decision-making

Introduction:

Traditional economics often assumes that people are perfectly rational actors. Behavioral economics challenges this assumption by incorporating psychological insights into economic models. This Behavioral Economics training course explores how cognitive biases, emotions, and social factors influence economic decision-making. You'll learn how these psychological factors affect choices related to spending, saving, investing, and more, providing you with a more nuanced and realistic understanding of economic behavior. This course empowers you to predict and influence choices more effectively, whether you're in business, policymaking, or simply interested in understanding human behavior.

Target Audience:

This course is designed for professionals and individuals interested in understanding how psychology influences economic decisions. The target audience includes:

• Economists working in academia, government, and the private sector
• Marketers and business professionals
• Policymakers and public administrators
• Financial advisors and investment professionals
• Researchers in social sciences and related fields
• Anyone interested in understanding human behavior in economic contexts

Course Objectives:

Upon completion of this Behavioral Economics training course, participants will be able to:

• Understand the core principles of behavioral economics and how they differ from traditional economic assumptions.
• Identify and explain common cognitive biases and heuristics that influence decision-making.
• Analyze how emotions, social norms, and framing effects impact economic choices.
• Apply behavioral economics principles to real-world problems in business, finance, and public policy.
• Design interventions and strategies to influence behavior and improve outcomes.
• Predict how individuals will respond to different economic incentives and situations.
• Critically evaluate economic models and policies from a behavioral perspective.
• Understand the limitations and applications of behavioral economics.
• Improve their decision-making and communication skills.
• Gain a deeper understanding of human behavior in economic contexts.

Duration

10 Days

Course Content

Module 1: Introduction to Behavioral Economics

• The limitations of traditional economics: The "rational actor" assumption.
• The emergence of behavioral economics: Integrating psychology into economic models.
• Key concepts and principles: Bounded rationality, cognitive biases, and heuristics.
• Applications of behavioral economics in various fields.
• Course overview: Structure, learning objectives, and assessment methods.

Module 2: Cognitive Biases and Heuristics I

• Availability heuristic: The role of memory and salience in judgment.
• Representativeness heuristic: Judging probabilities based on similarity.
• Anchoring bias: The influence of initial information on decisions.
• Confirmation bias: Seeking out information that confirms existing beliefs.

Module 3: Cognitive Biases and Heuristics II

• Overconfidence bias: Overestimating one's abilities and knowledge.
• Loss aversion: The pain of a loss is greater than the pleasure of an equivalent gain.
• Framing effects: How the presentation of information affects choices.
• Mental accounting: Treating money differently depending on its source or intended use.

Module 4: Prospect Theory

• Prospect theory: An alternative to expected utility theory.
• Value function: How people perceive gains and losses.
• Probability weighting: How people distort probabilities.
• Applications of prospect theory in decision-making.

Module 5: Heuristics and Biases in Financial Decision-Making

• Behavioral finance: Applying behavioral economics to financial markets.
• Investor biases: Overconfidence, herding, and market timing.
• Market anomalies: Explaining deviations from market efficiency.
• Applications: Understanding investment decisions and market behavior.

Module 6: Decision-Making Under Uncertainty

• Risk aversion and risk seeking: How people make choices under uncertainty.
• Ambiguity aversion: The dislike of unknown probabilities.
• The role of emotions in decision-making under uncertainty.

Module 7: Intertemporal Choice

• Intertemporal choice: How people make decisions involving trade-offs between present and future rewards.
• Discounting: The tendency to value present rewards more than future rewards.
• Present bias: The strong preference for immediate gratification.
• Applications: Saving, investment, and procrastination.

Module 8: Social Preferences

• Social preferences: How people care about the well-being of others.
• Altruism: Selfless concern for others.
• Reciprocity: Responding to kindness with kindness and to unkindness with unkindness.
• Fairness: Concerns about equity and justice.

Module 9: Nudge Theory and Behavioral Interventions

• Nudge theory: Influencing behavior without restricting choice.
• Designing effective nudges: Using insights from behavioral economics.
• Applications of nudges in various domains: Health, savings, and energy conservation.
• Ethical considerations in nudging.

Module 10: Behavioral Economics and Public Policy

• Applying behavioral economics to policy design.
• Behavioral insights for improving public services and programs.
• Examples of behavioral policies: Default options, framing effects, and social norms.
• Evaluating the effectiveness of behavioral interventions.

Module 11: Behavioral Economics in Business and Marketing

• Applying behavioral economics to marketing and sales.
• Understanding consumer behavior: Biases, heuristics, and decision-making.
• Designing effective marketing campaigns: Using behavioral insights.
• Pricing strategies and framing effects.

Module 12: Advanced Topics and Applications

• Neuroeconomics: The neural basis of decision-making.
• Behavioral game theory: Applying behavioral economics to strategic interactions.
• The future of behavioral economics: Emerging trends and research directions.
• Ethical considerations in behavioral economics.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.