2.0

credits

Average Course Rating

Have you wondered why monetary incentives sometimes work to achieve intended outcomes, whereas they spectacularly backfire in others? Were your decisions affected by "choice architecture" in school or your workplace? Can Netflix incentivize its customers to exercise, and do they have a responsibility to do so? These are examples of inquiries you will encounter in this experiential learning course. A business partner will offer a real-world problem for you to solve, learn and apply concepts from neoclassical economics (incentive theory) and behavioral economics (choice architecture, framing, nudges). You will be challenged to apply learnings on how incentives and nudges (or a combination) impact decisions to improve organizational processes, outcomes, or society. Students will learn principal-agent theory and incentive design, and behavioral concepts such as hyperbolic discounting, loss aversion, and the potential of "choice architecture" to affect behavior. Students will apply economic and behavioral concepts and tools working in teams on a real business problem in partnership with an organization. Teams will scope and provide actionable recommendations to solve a problem. Applications may cover a wide range, such as converting first-time customers into repeat customers, or encouraging employees or community members to recycle, exercise or lower their carbon footprint. The course is relevant to students interested in public service, management and leadership.