313.620.01 Introduction to Behavioral Economics: Theory and Practice
- Health Policy and Management
- 3rd term
- 3 credits
- Academic Year:
- 2017 - 2018
- East Baltimore
- Class Times:
This is a blended course. Over the course of the term, eight hours of classroom time will be replaced by outside-of-class work.
- Tu Th, 1:30 - 2:50pm
Mainstream neoclassical economics, as practiced by Milton Friedman and Paul Samuelson has provided a solid foundation for economic analysis for 150 years. Based on the concept of the rational decision-maker, this theory has survived the onslaught of alternative economic theories. In the past 30 years a new line of economic thought – behavioral economics – has emerged, and is gaining support within the profession because it appears to explain and predict human behavior more accurately than does neoclassical economics. We will examine the core elements of behavioral economics and discuss its strengths and weaknesses relative to neoclassical economics.
Explores the theoretical framework of behavioral economics, and applies that framework to issues in health and healthcare. Addresses elements of the theory of behavioral economics including: prospect theory, System 1/System 2 thinking, hyperbolic discounting, loss aversion, the endowment effect, framing and anchoring, mental accounting and commitment contracts, heuristics and biases, the power of the default, and pricing strategies. Applies these concepts to human behavior in general, as well as that of patients and physicians.
- Learning Objectives:
- Explain the theory, tools, and concepts of behavioral economics, and how they relate to neoclassical economics and behavioral psychology
- Apply the tools of behavioral economics appropriately to analyze decision-making of individuals and organizations, with a focus on health and health care
- Integrate current research literature on behavioral economics, and apply the research to issues in health, health care, and the general political economy
- Methods of Assessment:
weekly written assignments (40%); team research design project (40%); active class participation (20%)
- Instructor Consent:
No consent required
- Special Comments:
This course may be coupled with “Behavioral Economics in Health Decisions, offered 4th term in IH as a de facto sequence