Behavioral economics is the study of decision making and related topics. Drawing on methods from psychology, sociology, neurology, and economics, this remarkable discipline illuminates one of the most deeply fundamental activities of human existence: the decision process.

From the moment we wake in the morning, we are confronted with a variety of decisions, from what to buy at the supermarket to which career path to pursue. Good decisions are made most of the time. Some of the time we don’t. Our lives are affected by whether our decisions are successful or not.

We rarely reflect on the actual decisions we make. process It’s decision making itself. Intuitions don’t always lead to happy outcomes, and making decisions can seem largely intuitive. Is it possible that you could be fully aware of the process? If you could put your hands on the gears of decision making and turn the process to your advantage, what would life be like?

That possibility is offered by behavioral economics. Behavioral economics explores the key motivators for our decisions, such as probability, risk, reward, and the passage of time, with a focus on human behavior. It sheds light on our psychology and how our brains process information as we make decisions.

Behavioral economics offers practical tools for making better and more satisfying decisions by applying its unique approach to many kinds of real-life choices.

Behavioral economics identifies many human biases or behavioral tendencies that influence our decisions, sometimes outside of our awareness. Our brains make name-brand merchandise or stocks of familiar companies seem desirable when we see them as being better or more valuable. Bad economic decisions can be caused by this innate human tendency.

Our customary processes and patterns of decision making are good news. Not. It is inevitable. By becoming aware of them and watching how they operate in our daily actions, we can open new possibilities for our own behavior and decision making that can meaningfully improve our quality of life.

In. Economics and psychology are related to behavioral economics. Professor Scott Huettel of Duke University shows you how decision making is an important part of human life. In 24 revealing lectures, you will study how behavioral economists look at decision making and explore a set of core principles that offer profound insight into how we gather information and integrate multiple factors to reach decisions. Using real-life examples and case studies, each topic builds to concrete recommendations so that you can understand the patterns of decision making, the purposes they serve, and how to use your knowledge to make more effective and beneficial decisions.

There are hidden structures in decision making.

Professor Huettel brings a focus to intriguing questions about human behavior.

• Why does voluntary blood donation decline steeply when people are paid for it?
• When faced with the same medical condition, why do doctors choose objectively better treatment for their patients than they do for themselves?
• Why do employees often fail to enroll in beneficial retirement plans, including plans requiring no financial contribution on their part?

When we apply the tools of behavioral economics, they have a deep structure that we can understand. Key topics such as these will be explored in order to understand the underlying factors in decision making.

• Simple rules: “heuristics”: Study the common internal guidelines people use to streamline decision making, or “heuristics”; observe four of the most prevalent ones, using real-life examples; and identify where heuristics are helpful and where they fail.
• Decisions regarding probability: Learn how human beings convert objective information about probability into a subjective sense of what may happen—an approach filled with error—and grasp two methods for improving probability-based decisions.
• Time-related decisions: Consider why decisions involving time are so challenging; study how time influences the subjective value of money; and learn key strategies for making better time-related decisions.
• Dealing with risk: Examine the element of risk tolerance in decision making; investigate the dynamics of perceived benefits versus perceived risks in decision problems; and study principles for successfully managing risk.
• High stakes: medical decisions: Uncover three core factors that influence how we make medical decisions, and learn how to apply the principles of behavioral economics to improve choices in this area.
• Group decision making: Explore how the diversity of groups benefits decision making, and investigate the principles that lead to good group decisions and how to use those principles in a range of practical contexts.

Limitations are turned into strengths by behavioral biases.

Professor Huettel highlights cognitive patterns that influence our behavior, pushing us toward safety, temptation, or immediate rewards. Behavioral economists call it among these. Confirmation bias. The tendency in decision making is to seek evidence that supports our beliefs or to argue against them. You will learn how to counteract or minimize this bias with clear-cut examples.

There is an in-depth look at two highly effective approaches to shaping decisions at the end of the course. Making a binding decision in the present for future benefits is called commitment to a course of action. Critical new insights are allowed to appear when the facts of a decision are changed. You will look at the effects of precommitment and reframing in a variety of examples, ranging from economic transactions and consumer choices to decisions regarding investment and retirement.

Practical use for empowering choices.

In. Behavioral economics is related to economics. When economics and psychology collide. You will learn more about how you make decisions and what steps you can take to make better ones. Professor Huettel shows the material directly to the decisions we make as a central part of living with meaningful stories, analogies, and case studies. One of life’s most essential skills is offered by this unique inquiry.