Behavioural Economics

The objective of the course is to provide participants with an in-depth understanding of the principles of behavioural economics and their application to the analysis of consumer behaviour. Throughout the learning process, students will develop the skills to understand how consumers make decisions and use this knowledge to evaluate and design marketing strategies. By the end of the course, students will be able to identify, analyse, and apply behavioural economics concepts to critically assess marketing practices.

Course Description:

The course focuses on integrating economics and psychology, challenging traditional economic models that assume consumers always act rationally. Key topics explored include cognitive biases, heuristics, choice architecture, and social influences.

Topics Covered:

– Introduction and cognitive biases
– Prospect theory and nudging
– Psychological aspects of behavioural economics
– Regulatory fit theory and framing
– Behavioural economics and the future of marketing
– Presentations

• High School Education or equivalent qualification.
• Previous knowledge finance and current topics
• Participants from non-EU countries must already hold a valid temporary residence permit. No permit will be issued for short courses.

Upon completion of the course, the student:
1. Understands key behavioural economics concepts such as loss aversion, anchoring, and the endowment effect. (Knowledge)
2. Applies the theoretical knowledge to evaluate how cognitive biases and heuristics influence consumer choices in real-world contexts. (Application)
3. Analyses and interpresents actual consumer behaviour. (Application)
4. Proposes behavioural economics insights and recommendations, encouraging collaborative problem-solving and exchange of ideas among peers. (Social)
5. Develops the ability to effectively communicate behavioral economics insights, enabling the student to apply these concepts to enhance marketing strategies, improve consumer engagement, and make data-driven decisions that influence consumer behaviour. (Individual)
6. Acquires the ability to transfer behavioural economics principles to diverse business contexts, particularly in marketing, enabling students to create effective marketing strategies, influence consumer behavior, and make informed decisions across various industries and markets. (Transferable)

To successfully complete the course and receive a certificate, participants must actively participate in sessions, complete independent assignments.

Throughout the course, students are assessed based on active participation in lectures, discussions, and group work. Assessment includes short quizzes, a case study analysis, and a team project with a presentation. The project involves analysing real marketing campaigns using behavioural economics theories and concepts.

The course takes place at EBS’s modern campus in Tallinn, Lauteri 3. Students have access to ergonomic classrooms, the EBS library, and the cloud-based Canvas learning platform. The study process is supported by online tools such as Zoom, MS Teams, or Canvas Conference. Free Wi-Fi is available throughout the building. On-site attendance is required.