Behavioral economics and the closely related field of behavioral finance couple scientific research on the psychology of decision making with economic theory to better understand what motivates investors, employees, and consumers. This course will be based heavily on my own research. We will examine topics such as how emotion rather than cognition determines economic decisions, “irrational” patterns of thinking about money and investments, how expectations shape perceptions, economic and psychological analyses of dishonesty by presumably honest people, and how social and financial incentives combine to motivate labor by everyday workers and CEOs alike. This highly interdisciplinary course will be relevant to students with interests in General Management, Behavioral Finance, Entrepreneurship, Social Entrepreneurship, and Marketing.

This class has two main goals:

1. To introduce you to the range of cases where people (consumers, investors, managers, and significant others) make decisions that are inconsistent with standard economic theory and the assumptions of rational decision making. This is the lens of behavioral economics.
2. To help you think creatively about the applications of behavioral economic principles for the development of new products, technology based products, public policies, and to understand how business and social policy strategies could be modified with a deeper understanding of the effects these principles have on employees and customers.

Dan Ariely is the James B. Duke Professor of Psychology and Behavioral Economics at Duke University, with appointments in the Fuqua School of Business, the Center for Cognitive Neuroscience, and the department of Economics. As one of the foremost leaders in psychology and behavioral economics, Dr. Ariely has published his research in top economic, medical and psychology journals and is the author of Predictably Irrational (2008), The Upside of Irrationality (2010), and The (Honest) Truth About Dishonesty (2012), three bestselling general audience books about research in behavioral economics. In addition, he is the founding member of The Center For Advanced Hindsight.  More information about Dan can be found at:  www.danariely.com

The class will consist of lecture videos, and integrated quiz questions. There will also be standalone homeworks that are not part of the lectures, and optional reading material. There might be an optional final exam.

Curiosity about human nature.

I will cover some of the material that is in my 3 books Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions (2008), The Upside of Irrationality: The Unexpected Benefits of Defying Logic at Work and at Home (2010), and The Honest Truth About Dishonesty: How We Lie to Everyone---Especially Ourselves (2012).

• Will I get a certificate after completing this class?

  Yes. Students who successfully complete the class will receive a certificate signed by the instructor.