The objective of this course is to equip participants with the essential knowledge and skills to understand and apply the behavioral economic approach to real-world situations. By the end of the course, participants will be able to:

• Explain the basic assumptions and principles of behavioral economics
• Identify and evaluate evidence for systematic deviations from rationality and self-interest in economic behavior
• Incorporate psychological factors into economic models and analysis
• Evaluate the effects of behavioral interventions on economic behavior and welfare
• Discuss the ethical and policy implications of behavioral economics

This course is designed for professionals who are interested in learning about behavioral economics, its applications and implications. It is suitable for those who work in or interact with the economic sector, such as managers, consultants, analysts, investors, or educators. It is also relevant for those who want to enhance their general knowledge and skills in psychology and economics.

By taking this course, participants will benefit from:

• Gaining a comprehensive and up-to-date understanding of trade economics
• Developing analytical and critical thinking skills to deal with trade issues
• Enhancing their professional competence and confidence in the global economy
• Expanding their network and learning from peers and experts in the field

Day One:

Introduction to Behavioral Economics

• What is behavioral economics and why does it matter?
• What are the main goals and challenges of behavioral economics?
• What are the key concepts and principles of behavioral economics?
• What are the main sources of data and information on behavioral economics?

Day Two:

Heuristics and Biases

• What are heuristics and biases and how do they affect economic behavior?
• What are the main types of heuristics and biases (e.g., availability, representativeness, anchoring, framing)?
• How do heuristics and biases affect judgment, decision making, and belief formation?
• How can heuristics and biases be reduced or exploited?

Day Three:

Preferences and Utility

• What are preferences and utility and how do they affect economic behavior?
• What are the main types of preferences (e.g., time preferences, risk preferences, social preferences)?
• How do preferences differ from standard assumptions (e.g., time inconsistency, loss aversion, fairness)?
• How can preferences be measured or manipulated?

Day Four:

Strategic Interaction and Game Theory

• What is strategic interaction and game theory and how do they affect economic behavior?
• What are the main types of games (e.g., simultaneous vs. sequential, one-shot vs. repeated, complete vs. incomplete information)?
• How do players choose their best strategies in different games?
• How do psychological factors (e.g., bounded rationality, limited attention, emotions) affect game outcomes?

Day Five:

Behavioral Interventions and Policy

• What are behavioral interventions and policy and how do they affect economic behavior?
• What are the main types of behavioral interventions (e.g., nudges, defaults, incentives)?
• How do behavioral interventions work (e.g., choice architecture, salience, social norms)?
• What are the ethical and policy issues (e.g., paternalism, welfare, freedom) raised by behavioral interventions?

To enhance learning and practical application of concepts, the training course will use a combination of interactive lectures, case studies, group discussions, practical exercises, and real-world examples. Participants will also get the chance to collaborate on group projects and create action plans adapted to the needs of their respective organizations.