Dan Ariely’s A Beginner’s Guide to Irrational Behavior

Behavioral economics couples scientific research on the psychology of decision making with economic theory to better understand what motivates financial decisions. In A Beginner’s Guide to Irrational Behavior, you will learn about some of the many ways in which we behave in less than rational ways, and how we might overcome our shortcomings. You’ll also learn about cases where our irrationalities work in our favor, and how we can harness these human tendencies to make better decisions.

Watch intro video

This course will draw heavily on my own research, and pulls largely from my three books:  Predictably Irrational: The Hidden Forces That Shape Our Decisions (2008),  The Upside of Irrationality: The Unexpected Benefits of Defying Logic at Work and at Home (2010), and The Honest Truth About Dishonesty: How We Lie to Everyone–Especially Ourselves (2012). We will examine topics such as our “irrational” patterns of thinking about money and investments, how expectations shape perception, economic and psychological analyses of dishonesty by honest people, how social and financial incentives work together (or against each other) in labor, how self-control comes into play with decision making, and how emotion (rather than cognition) can have a large impact on economic decisions. This highly interdisciplinary course will be relevant to all human beings.

1. Introduce you to the range of cases where people (consumers, investors, managers, friends, significant others, and even you) might make decisions that are inconsistent with standard economic theory and the assumptions of rational decision making. This is the lens of behavioral economics.
2. Help you think creatively about the applications of behavioral economics to the development of new products, technologies and public policy, and to understand how business and social policy strategies could be modified with a deeper understanding of the effects these principles have on all of us.

There are two tracks that you can take to receive a Statement of Accomplishment for this course. For each track, you will need to earn a grade of 85% or above, but your path toward that grade will be different under each track.

Normal:
50% Lecture Quizzes
50% Final Exam

Distinction:
20% Reading Quizzes
20% Lecture Quizzes
30% Final Exam
15% “Solve a Problem” Writing Assignment
15% “Design an Experiment” Writing Assignment

I will cover some of the material that is in my 3 books Predictably Irrational: The Hidden Forces That Shape Our Decisions (2008),  The Upside of Irrationality: The Unexpected Benefits of Defying Logic at Work and at Home (2010), and The Honest Truth About Dishonesty: How We Lie to Everyone–Especially Ourselves (2012).

And in honor of this class, all three books will be available as an e-bundle. You can purchase the Irrational Bundle through Chegg, Kindle, Nook, iBookstore,  Kobo, or Google.

Precourse:       Introduction to Behavioral Economics

Week 1:           Irrationality

Week 2:           Psychology of Money

Week 3:           Dishonesty

Week 4:           Labor and Motivation

Week 5:           Self-control

Week 6:           Emotion

Postcourse:    Applications

• Will I get a Statement of Accomplishment after completing this class?Yes. Students who complete the class with a grade of 85% and above will receive a Statement of Accomplishment signed by Dan.

Link to sign up here https://www.coursera.org/course/behavioralecon