Wouldn’t it be fantastic if a business could figure out consumer preferences and use this information to their advantage? The problem is that sometimes consumers can’t figure out what is best for themselves!
This course uses ideas taken from economics and psychology to help find anomalies within commonly believed ideas, and why they occur. This class seeks to shed light on these issues through lectures and first-hand experience from in-class activities. Topics include:
- What does it mean to be rational?
- Why aren’t we are fully rational?
- Are there consistent ways that we deviate from full rationality?
- What rules of thumb do people use in certain situations?
After successful completion of this course students should be able to:
- Identify/understand/appreciate how and why emotions and cognitive biases can influence and undermine strategic decision making
- Identify/understand/appreciate market anomalies such as stock market bubbles and crashes
- Identify/understand/appreciate most common mental mistakes including: overconfidence, myopia, social proof/herding, loss aversion, confirmation bias, random anchoring, cognitive dissonance, inattention blindness, self-attribution bias, labeling, action bias, recency bias, availability bias, scarcity bias, mindfulness, mental accounting, natural pattern seekers, the halo effect, illusion of control/planning fallacy, status quo bias, framing/re-framing events, hindsight bias, mistaking correlation for causation, the tendency towards reversion to mean/normal state over time, and mistaking uncertainty for risk.
Applies Towards the Following Certificates
- Strategic Business : Core Courses