Dr Matthew Levy and Dr Jonathan de Quidt

How do people really make choices when faced with uncertainty? Do people know what makes them happy? How do people make predictions about the world around them? These are some of the important questions behavioural economists seek to answer.

Combining the fields of psychology and economics, the discipline challenges traditional economic theory which assumes that individuals make rational choices. Rather, behavioural economics considers how people are more social and impulsive, less adept at using information, and more susceptible to psychological biases than standard economic models assume.

This highly interactive course gives students a clear introduction to the principles and methods of behavioural economics in relation to individuals, firms and institutions. Addressing behavioural economics both at the macroeconomic and microeconomic levels, you will engage in important topics such as heuristics, biases, nudging strategies and rational expectations.

Providing you with cutting-edge analytical tools, drawn from recent research, you will understand how to apply these tools in a variety of economic settings both in the private and public sectors. Using these tools you will be able to incorporate psychologically-motivated assumptions into economic models, and interpret the implications of these assumptions for policy development and business strategy.