Summary
The complexity of the problem, the lack of information and time, or the uniqueness of the situation cause people to act suboptimally. Although people are motivated to make effective decisions – which is especially true in markets – they often display limited willpower, lack of deliberation and incomplete self-interest. All these forms of irrationality play an important role in everyone’s life. Behavioural economics research on human decision-making also highlights the powerful influence of emotions – moral feelings, fear, expectation, trust, envy, disgust, sympathy and anger – and intuition on human decision-making. In a broad class of phenomena ranging from savings, health care, investing in the stock markets, the behavior of employees and employers in the labor market, or voters and politicians in public elections, behavioral economists have already identified both rational actions and patterns of behavior indicating limited human capacity to achieve desirable goals.
Thus, the goal of this course is to understand and analyze the ways in which people process information and make decisions has been the focus of the efforts of many researchers and practitioners in the commercial and non-commercial spheres. It is concerned with understanding these processes in the context of the findings of behavioral scientists in recent decades – human decision making deviates from the so-called optimal or strictly rational choice in many cases and situations.
We will also look at how these insights can influence marketing communications and its practical implementation – specifically the design of communications strategy, channel planning and the design of individual interventions. Also included is how to measure and evaluate interventions, including the development of hypotheses and how to test them using experiments. Finally, the ethical aspects of such interventions in non-commercial or commercial use will be discussed.
Key benefits
Why don’t people always act as rational economic agents? How can we use mathematics and psychology to improve our economic models? Contrary to the assumptions of traditional economics, people do not automatically choose the optimal course of action, even when they are appropriately motivated. This course will provide you with the skills to optimize strategies and policies by summarizing the underlying framework and context that influence people’s decisions.
You will cover the economics and psychology of decision making and gain a deep understanding of economics as well as the skills to adapt strategies and policies to address deviations from rational behavior. You will also learn how to conduct experiments in economics, for example in testing, and how best to implement a policy to make it most beneficial to you and your organisation.
Upon successful completion of this course:
- Gain a more complete understanding of human behaviour, preferences and cognitive errors
- You will better understand consumer behaviour
- You will learn ways and methods to motivate your customers to interact more
- You will make better business decisions and actions that will lead to improvements in your organisation
- You will be aware of your customers' motivation and be able to "nudge" them
Basic information:
- 7 weeks
- English
- On-line
- € 700
- Anytime
Testimonial
For whom the course is suitable
Are you interested in how people make decisions? Do you want to combine rigorous economic thinking with psychological insights? Can you combine analytical thinking with finding creative solutions to real-world problems? Would you like to help people improve their lives by developing techniques that get them to make better decisions? If so, a course in behavioural economics could be the right choice for you.
What you will learn in the course
The aim is to introduce the participants to the key principles and concepts of behavioural economics and to deepen their knowledge of the subject based on a neoclassical foundation. Emphasis is placed on the application of behavioural economics to a range of phenomena arising in decision-making and other processes. Behavioral economics enriches neoclassical economic theory with social, cognitive, and emotional factors. Its concepts seek to explain systematic deviations from standard models of behaviour based on economic rationality. Therefore, the graduate is able to articulate the basic differences between neoclassical and behavioral economics, explain mental shortcuts and heuristics, and design solutions based on them to achieve more efficient outcomes.
You will learn about econometric methods that are important for applied economics. Specifically, we will first brush up on the basics of the standard regression model and then discuss methods that may be useful when the dependent variable of interest is endogenous. The last section will introduce models that are useful when the dependent variable is binary. Throughout the course, candidates follow a practical approach to understanding empirical econometric methods, giving them the opportunity to gain experience in applying these methods in their own specialty.
Experiments are an increasingly important tool in economics. They are used, for example, to understand why financial investors spend too little on stocks, why consumers are reluctant to switch brands and in analysing labour market decision-making. Therefore, we will entertain the following questions - Why are experiments such a powerful tool for uncovering the causal effect of treatments? What exactly are economic experiments? Why should incentives work in economic experiments? Do they always work? How can experiments be used to measure utility? What statistical analyses are needed for experimental data? What is the optimal sample size for finding the causal effect of interest? Are the results found in the lab predictive of real-world behavior
?
We make thousands of decisions every day. Should I cross the road now or wait for an oncoming truck to pass? Should I have fries for lunch or a salad? How much should I tip the taxi driver? We usually make these decisions almost without thinking, using what psychologists call "heuristics" - rules that allow us to navigate through life. Without these mental shortcuts, we would be paralyzed by the multitude of daily decisions. In some circumstances, however, these shortcuts lead to predictable mistakes - predictable, that is, if we know what to look out for. Behavioral finance addresses these and dozens of other financial decision-making mistakes that we can avoid if we know the biases that cause them. As part of the study, we will explore these predictable mistakes and see where we are most susceptible to them. The goal is to guide participants to make better financial decisions. Learn how to improve your spending, saving and investment decisions for the future.
The aim is to deepen knowledge of the aspects influencing consumer behaviour and the theories and methods of advanced consumer market analysis. We will focus on advanced market analysis and the development of decision-making skills, examine consumer behaviour from a marketing perspective and learn about models of consumer decision-making behaviour. The program takes a closer look at how consumers process information, develop preferences, and make decisions.
The purpose of this course is to apply critical thinking methods to one's own goals and to understand the importance of critical thinking. The aim of the course is to provide candidates with the necessary insight into the deeper and societal implications that the development of marketing communications and PR entails. The course introduces candidates to ethical dilemmas in economics and marketing, develops critical thinking skills and focuses on preparing them to make responsible decisions.
Executive course tuition fee
If you are ready to take your career and personal life up a notch and want to get an education with an innovative and practical approach, don’t hesitate to apply!
Course tuition: € 700
Payment can be made in one lump sum or spread over up to 3 interest-free instalments. A first instalment of € 400 is always required before the start of the course.
Tuition fees include all study materials and access to all seminars or online lectures organised by the European Institute of Finance & Management.
About the certificate
Upon successful completion of the course, you will receive a certificate of completion from the European Institute of Finance & Management, which will be valuable evidence that you have acquired improved skills, knowledge and abilities in the field of behavioural economics and will be able to contribute to the successful development of your organisation.
Throughout the course you will be continuously assessed in relation to the completion of several practical assignments. These assignments are always completed online and successful completion of these assignments is a prerequisite for completing the entire course. You must therefore complete all the assignments given to you as part of your studies in order to be issued with a certificate of successful completion. These assignments vary from course to course and are based on the difficulty of the course and the requirements of the course sponsors or lecturers.
The certificate will be issued in your legal name and will be sent to you on successful completion of the programme as per the requirements set out at the address you have provided on your course application form. The certificate has unlimited validity and can be used throughout your career.
