Re-Thinking Economics: Behavioural and Psychological Approaches

LSE masterclass in social science

The fourth, and last, Masterclass for 2017, Re-Thinking Economics: Behavioural and Psychological Approaches, will take place in Madrid from Monday 27 – Wednesday 29 November at the Fundación Ramón Areces.

Monday 27 November 2017
The Power of Frames and Framing
Professor Luis Alberto Franco, Loughborough University

Further details

On the first day, this Masterclass will focus on how the concepts of ‘frames’ and ‘framing’ are receiving increasing attention in a broad range of disciplines, including psychology, economics and management. 

These concepts are particularly relevant for understanding and improving decision-making processes. Empirical evidence from field and experimental studies consistently show how both frames and framing can covertly influence reasoning and decision quality.  

This Masterclass will start by distinguishing between cognitive and interactional perspectives on frames and framing. It will then present some principles and a range of tools to help individuals and teams improve the quality of their frames and the effectiveness of their framing. 

Developed within Decision Sciences, they offer a practical response to the growing need in organisations to develo an effective and efficient decision-making capability. Illustrations of how these principles and tools can be applied in practice will be presented during the Masterclass, with balanced emphasis on both individual and team decisions.

Tuesday 28 November 2017
Behavioural Economics: An introduction
Dr Matteo M Galizzi, Department of Psychological and Behavioural Science, LSE

Further details

The second day will build on the content of the first day, and it will provide a self-contained introduction to behavioural economics.

It will start by providing an operational definition of behavioural economics, and by briefly describing its main methods and principles. It will then review some of the current applications of behavioural economics to public policy, and critically discuss the implications of behavioural economics for decision-making in the public and private sectors, with a special emphasis on health.

It will finally illustrate two key areas where the experimental evidence of actual economic behaviour has suggested a re-think of economics through the behavioural lens: social preferences and time preferences. 

Wednesday 29 November 2017

Modelling Judgments, Improving Decisions
Professor Gilberto Montibeller, Loughborough University

2-2.30pm:
Certificate ceremony and programme close 

2.30-3.30pm:
Closing Reception

Further details

The third day builds on the first two days and explores the role of modelling judgments in two types of strategic decisions: those that involve multiple and conflicting objectives and those that are taken under uncertainty.

Extensive evidence from behavioural decision research has shown that we adopt sub-optimal strategies for gathering and aggregating information when making unsupported decisions.

On the other hand, the development, in Decision Sciences, of Risk and Decision Analysis provides a robust framework to represent and analyse complex strategic decisions and policy options, integrating evidence and judgments.

The use of this framework to support decision making helps overcoming cognitive limitations and provides guidance on how to de-bias judgments from decision makers and experts. And it goes beyond the use of nudges and choice architecture, which are classic in Behavioural Economics, towards helping people to become better decision makers.

This masterclass will present these frameworks and illustrate how they can be used in practice, with emphasis on health-related prioritisation.

Applications are now open.

To apply, please visit the Fundación Ramón Areces website.

Successful candidates will be offered a place on merit by a selection committee consisting of representatives of LSE and the Fundación Ramón Areces.