BEHAVIORAL ECONOMICS

Nudging to Shape Decisions

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START DATE

September 20, 2022

DURATION

8 weeks, 3–5 hrs/week

LANGUAGES

English, Portuguese, and Spanish

FEE

$2,800

START DATE

September 20, 2022

DURATION

8 weeks, 3–5 hrs/week

LANGUAGES

English, Portuguese and Spanish

FEE

$2,800

Unlock the value of understanding the human dynamics
of choice and decision-making.

Over eight weeks, you will explore the role biases, fallacies, and heuristics play in decision-making. Upon completing the program, you will be equipped with conceptual frameworks and actionable tactics for applying insights from behavioral economics to improve outcomes.

What percentage of the decisions people make are based on emotion?

0%

90%

What percentage of purchasing decisions are subconscious?

0%

95%

What percentage of business leaders can capitalize on their understanding of behavioral economics?

0%

100%

Whatever your industry, drive better results and create long-lasting value.

Distinctive Online Learning Features

Adaptable Learning
Method

This program’s curriculum blends self-paced activities with live-online sessions for you to put learnings into practice through real-world experimentation, observation, and reflection.

Personalized Practice and Feedback

The program is designed to meet you at your current skill level and grow your communication skills with an approach this is more like customized coaching than classroom teaching.

Tailored
Guidance

Throughout the program, you’ll be guided by a learning facilitator to mentor and advise you. You’ll improve your skills in real time and be able to track, observe, and reflect on your progress.

Your Chicago Booth Professor

Devin G. PopeSteven G. Rothmeier Professor of Behavioral Science and Economics, Chicago Booth-img

Devin G. Pope

Steven G. Rothmeier Professor of Behavioral Science and Economics, Chicago Booth

Imagine everything you can learn from a professor on the faculty whose members include a winner of the Nobel Prize in Economic Sciences. An eminent behavioral economist, Devin Pope is devoted to knowledge and research at the intersection of economics and psychology.

Prior to joining the Chicago Booth faculty in 2010, Pope was on the faculty at the Wharton School of the University of Pennsylvania. He earned a PhD in economics from UC Berkeley in 2007 and a BA in economics from Brigham Young University in 2002.

Using primarily observational data, Pope studies how psychological biases play out in field settings and economic markets. He has published work in prestigious journals such as the American Economic Review, the Quarterly Journal of Economics, the Journal of Political Economy, and the Review of Economic Studies. His work has also been featured in publications devoted to psychology and multidisciplinary matters, including Management Science and Psychological Science.

Learning Targets

Learn how to design products and services that create more value for customers.

Explore hidden biases and heuristics that either reinforce or counteract outcomes.

Discover the tools to optimize your value proposition for greater influence and impact.

Discover how “choice architecture” may optimize decisions to benefit economic, regulatory, and policy-creation strategies.

Gain the frameworks to draw actionable insights from data intelligence to improve customer experience and engagement.

Discover the emotional and cognitive underpinnings of economic behavior changes and how professionals make decisions.

Increase management decision outcomes that result in improved enterprise-wide efficiencies and processes.

Program Content

A History of Behavioral Economics and Prospect Theory

  • Analyze the evolution from classical economics (e.g., Adam Smith) to modern-day neoclassical economics and how behavioral economics started to flourish in this paradigm.
  • Understand the revolutionary turning point for the three fathers of behavioral economics at the end of the 1970s to explain how psychology became part of the economic model of decision-making.
  • Dissect what systematic bias is and learn about the most cited and groundbreaking behavioral economics theory: prospect theory.
  • Explore examples of how prospect theory matters both in our personal lives and when running a business.

Sophisticated Choices and Self-Control

  • Explain the influence of intertemporal components in the choices we make and realize how they can lead to non-standard behavior (such as obesity, addiction, and credit card overuse and dependence).
  • Formulate mathematical models that explain phenomena like procrastination and overindulgence. 
  • Visualize examples of how self-control problems can lead to poor decision-making—As soon as you turn eighteen you are much more likely to be tried as an adult, and yet we do not see people stop committing crimes as soon as they turn eighteen. Why is this?
  • Learn how to apply this knowledge in a way that modifies behavior and improves the health of your business or people around you.

Fairness

  • Compare the dichotomy between the standard rational economics assumption that humans are self-interested and the behavioral economics propositions explaining how and why humans are altruistic and care about giving to others.
  • Articulate why thinking in financial terms and incentives might not always be a wise idea and understand why fairness matters in economic marketplaces and how it is compatible with running a business.
  • Analyze why and when it is socially acceptable to charge fees or surcharges and, more generally, to balance supply and demand using standard economic pricing mechanisms.
  • Learn the importance of social norms and pressure, reciprocity, and distributive vs. procedural justice.

The Psychology of Incentives

  • Discover through a Qualtrics-based exercise in experimentation and prediction what kind of motivational treatments work best in the short run to make someone execute a given task.
  • Realize that behavioral economics is just getting started when it comes to understanding motivation—What other approaches motivate people to make decisions?
  • Think about how to create a company culture that is built on solid psychological principles.

Biased Beliefs

  • Recognize how information interventions over biased beliefs can modify mind-sets and be potential sources of change and development of new standards in decision-making.
  • Learn how nearly everyone exhibits common biases such as projection bias and the bias of the winner’s curse.
  • Identify some of the most important biases, including survivorship bias and overconfidence, and learn how they influence business decision-making.

Inattention (Salience)

  • Discover how our attention is limited and why this leads us to make significant decision errors when our attention is drawn to some things but not others.
  • See how something as simple as failing to pay attention to certain digits of a number can dramatically change how certain economic markets function.
  • Learn how inattention works in a competitive market and how to grapple with the ethics of competing for consumer attention.

Discrimination

  • Measure and identify the sensitive topic of discrimination through five distinctive methods: audit studies, all-else-equal studies, own-group bias studies, correspondence studies, and eliminating group cues in the decision-making process.
  • Learn how standard economics categorizes discrimination into one of two models: statistical discrimination and taste-based discrimination.
  • Explore how psychology can deepen our understanding of how discrimination works and how we can combat it.

Nudging

  • Become familiar with basic principles of good choice architecture and the way we can influence people’s behavior by nudging them into a good direction.
  • Discuss several examples of nudging such as putting numbers into context and smart engineering/design.
  • Detect examples of nudges and sludge (bad psychology; the exact opposite of nudging) in the real world and apply your insight to your business or career.
Credentials

By completing this program, you’ll…

  • Become a member of the Chicago Booth Executive Education network, which represents nearly 60,000 executives across 130 countries.
  • Receive a certificate of completion, as well as a digital badge that serves as an online credential to be shared among your social networks. You’ll also have the opportunity to join our private LinkedIn groups to grow your professional networks.
  • You’ll have learned from world-class faculty within a university associated with 92 Nobel laureates.

Chicago Booth has nine faculty members who have won the Nobel Prize in Economic Sciences, and their knowledge and research help shape our Executive Education programs.

Upon completion of the program, you’ll receive a Certificate of Completion from Chicago Booth Executive Education.

You’ll also receive a digital badge that serves as a certified online credential of your accomplishment.

BEHAVIORAL economics-img-Chicago Booth

This program is an excellent fit for:

  • Marketing professionals who want to gain a deeper understanding of their target audiences.
  • Sales staff looking for new ways to turn objections into sales opportunities.
  • Finance advisors who want to help their clients make better decisions.
  • Public sector agents who would like to create efficient policies that connect people.
  • Those who work in Human Resources that need to identify better incentives for their organizations’ teams.
  • Management experts seeking more effective ways to manage the risks associated with their projects.

What our participants have to say:

Gabriela Lucia De La Rosa Consuegra
Gabriela Lucia De La Rosa Consuegra
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“The program is personally and professionally enriching. Learning the fundamentals of behavioral economics, examining biases, and knowing how to motivate ourselves and others to make better decisions are just some of the takeaways. The sessions with Professor Devin Pope, the teaching assistant, and guest speaker Scott Young are great because they explore the program topics and delve into real examples that are applicable at work. The activities are refreshing and bring all the knowledge imparted down to earth.”
Nick Heinzmann
Nick Heinzmann
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“This program provides an excellent overview of behavioral economics with actionable examples to integrate key concepts into your business. The materials, prepared and delivered by University of Chicago professors, are top-notch and provide fertile ground for your own further exploration of the topics introduced.”
Kristina Zivich
Kristina Zivich
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“I'd highly recommend participating in this program, given both the knowledge of the topic gained, which presents a lot of practical applications, and what you learn about yourself. I feel fortunate to have been able to have this opportunity, and I know it will serve me well in my career.”
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Would you like to learn more?

We have advised professionals, worldwide, for years.

Schedule a call with us and we’ll tell you all about how Behavioral Economics: Nudging to Shape Decisions can boost your career.

There are a limited number of spots available.

Reserve yours today. Are you already determined to inquire, impact, and inspire?