Programmes

Behavioural Economics and the Modern Economy

  • Executive
  • Department of Economics
  • Application code EE941
  • Starting 2020
  • Short course: Open
  • Location: Houghton Street, London

This intensive course will bring participants up to date with modern developments in behavioural economics.

Virtual 4 week course starting June 2020

Due to the COVID-19 pandemic, we have made the decision to move the June delivery of this course from on-campus to virtual learning. It will still maintain the same outstanding content but delivered in a new format that enables our participants to learn at a distance. For more information, please visit our dedicated virtual delivery page.


 Behavioural economics has revolutionised economics in the past thirty years by replacing the standard assumptions of perfect rationality and unbridled self-interest with more psychologically realistic alternatives. Behavioural economists believe that economists have traditionally acted as if humans are smarter and harsher than they actually are. More importantly, the departures from rationality and selfishness are systematic – the scientific goal of behavioural economics is to understand how people actually behave.  

The course will draw on psychological/experimental research as well as formal behavioural economic models.

This executive course is suitable for:

  • Professionals in the business and financial sector
  • Policy practitioners interested in applying behavioural insights to public policy

On-campus tuition fee: £6,295

Includes all LSE tuition, course materials, daily lunches, and networking events. You will also be awarded an LSE certificate of completion at the end of the five days.

Virtual course tuition fee: £4,295

We have adjusted the programme fees to take into account that these programmes are being delivered virtually.

Part of LSE Executive Education Courses

Programme details

Entry requirements

All LSE executive education participants are required to have:

  • Fluency in English.
  • A good undergraduate degree or significant work experience in a relevant role(s).
  • Minimum two years’ professional experience. Typically our participants have more than ten years’ work experience.
  • If you're a participant on our virtual course, please ensure that you have access to a laptop or computer, with a webcam and a working microphone.  You will also need a reliable internet connection

Course pre-requisites: 
Basic knowledge of Microeconomics

 

Programme structure

This course will bring students up to date with modern developments in behavioural economics, with the aim of providing a clear statement of both behavioural economic thought and its implications for both firms and regulators. It will draw heavily on psychological and experimental research and formal economic models, and would appeal to those who have read about nudges or biases in the popular press but want a more disciplined understanding before applying it to their sector.

Key topics addressed:

  • Behavioural Finance: Trade, Insurance and Risk Perceptions
  • Planning over Time: Procrastination, Credit Markets, Housing, Saving and Retirement
  • Limited Social Rationality: Winner's Curse, Social Learning, Defensive Medicine
  • Libertarian Paternalism, Nudges. 

View a sample timetable of the week >>

Virtual course structure

Rather than an intensive five-day course, the virtual courses will be delivered over four weeks and you will be able to manage them alongside your working hours.

Week one will be a course orientation where participants can access your pre-course readings and meet fellow classmates, as well as a live welcome session hosted by our world-leading faculty.

Following that, your course will be taught over the course of three weeks with 10 contact hours each week, matching the level of contact time you would get on an on-campus course. Teaching will typically occur on weekdays during regular UK university hours. During this time, you'll have dedicated slots to meet your fellow participants, a virtual event per programme, full technical support by phone, email or live-chat and a 'virtual graduation' ceremony to end the course.

Course outcomes

  • Understand the heuristics and biases that characterise key aspects of human decision making
  • Gain an overview of people's social, risk and time preferences. In particular, how a better understanding of imperfect self-control and loss aversion have revolutionised economic debates in the past decade
  • Build a deeper understanding of the foundations of behavioural finance and some of the anomalies in financial markets
  • Acquire knowledge to help navigate some of the new regulatory solutions that behavioural economists advocate, and also the possibilities and limits of libertarian paternalism.

Find out more about LSE Executive Education Courses

Faculty and guest speakers

The course will be taught by:

Matthew Levy is a lecturer in the Department of Economics at LSE. He has a Ph.D. in Economics from the University of California-Berkeley. He teaces behavioural economics, public economics and health economics. Find out more here

Professor Nava Ashwaf is Professor of Economica and Research Director of the Marshall Institute at LSE. She holds a PhD in Economics from Harvard University. Find out more here

Dr Kristof Madarasz is Associate Professor in Managerial Economics and Strategy in the Department of Management at LSE. Find out more here

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