Behavioral Economics and Behavioral Operations
- Winter 21
Behavioral Economics and Behavioral Operations --- Behavioral economics combines lessons from psychology and economics to study how people process information and make decisions as employees, managers, and consumers. Behavioral operations management applies those insights to managing business operations. These fields have provided an understanding of how people's decisions deviate from "optimal" (rational and selfish) choices, as well as the consequences of such deviations in management and the marketplace. This course is devoted to understanding the nature, causes and implications of these deviations. We will then consider how (a) managers and policy makers can intervene to improve decision making and outcomes and (b) how markets are organized around exploiting or remedying deviations from rational decision-making.