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313.620.01
Introduction to Behavioral Economics: Theory and Practice

Course Status
Discontinued

Location
East Baltimore
Term
4th Term
Department
Health Policy and Management
Credit(s)
3
Academic Year
2021 - 2022
Instruction Method
In-person
Class Time(s)
Tu, Th, 1:30 - 2:50pm
Auditors Allowed
Yes, with instructor consent
Available to Undergraduate
No
Grading Restriction
Letter Grade or Pass/Fail
Course Instructor(s)
Contact Name
Frequency Schedule
Every Year
Prerequisite

Introduction to Microeconomics (212.619) or Applied Microeconomics for Policymaking (313.603), or equivalent

Description
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
Upon successfully completing this course, students will be able to:
  1. Explain the theory, tools, and concepts of behavioral economics, and how they relate to neoclassical economics and behavioral psychology
  2. Apply the tools of behavioral economics appropriately to analyze decision-making of individuals and organizations, with a focus on health and health care
  3. Integrate current research literature on behavioral economics, and apply the research to issues in health, health care, and the general political economy
Special Comments

This course may be coupled with “Behavioral Economics in Health Decisions" offered 3rd term in IH as a de facto sequence