Behavioral Decision-Making Perspective in Business and Public Policy (5 op)

Tavoitteet

The student is able to
- understand the role of heuristics and biases in everyday decision making
- explore the fields of behavioral economics and behavioral decision making
- identify and apply psychological factors in business and public policy applications
- evaluate development plans from behavioral perspective
- analyze ethical aspects of behavioral interventions and nudges  

Oppimateriaali ja suositeltava kirjallisuus

Main course literature includes the following articles. Additional video materials are given on Canvas platform.

Module 1:
• Kahneman, D. 2003. A perspective on judgment and choice: mapping bounded rationality. American psychologist, 58(9), 697
• Thaler, R., Sunstein, C. & Balz, J. 2013. Choice architecture. In Shafir, E. (eds.), The behavioral foundations of public policy (pp. 428–439). Princeton University Press.
• Fehr-Duda, H. & Fehr, E. 2016. Sustainability: Game human nature. Nature News, 530(7591).
• Goldstein, D., Johnson, E., Herrmann, A., & Heitmann, M. 2008. Nudge your customers toward better choices. Harvard Business Review, 86(12), 99-105
• Dholakia, U. M. 2016. Why nudging your customers can backfire. Harvard Business Review
• Steffel, M., Williams, E. F. & Pogacar, R. 2016 How to Nudge Your Customers Without Pushing Them Away. Harvard Business Review.

Module 2:
• Dolan, P., Hallsworth, M., Halpern, D., King, D. & Vlaev, I. 2010. MINDSPACE: Influencing behaviour for public policy. Institute of Government, London, UK.
• Oeberst, A., & Imhoff, R. 2023. Toward Parsimony in Bias Research: A Proposed Common Framework of Belief-Consistent Information Processing for a Set of Biases. Perspectives on Psychological Science, 18(6), 1464-1487.

Module 3:
• Sunstein, C. R. 2015. Fifty shades of manipulation.
• Reisch, L. A. & Sunstein, C. R. 2016. Do Europeans like nudges? Judgment and Decision Making, 11(4), 310–325.
• OECD. 2017. Behavioural Insights and Public Policy: Lessons from Around the World. OECD Publishing, Paris.
• Benartzi, S., Beshears, J., Milkman, K. L., Sunstein, C. R., Thaler, R. H., Shankar, M., Tucker-Ray, W., Congdon, W. J. & Galing, S. 2017. Should governments invest more in nudging? Psychological Science, 28(8), 1041–1055.

Module 4:
• Michie, S., Richardson, M., Johnston, M., Abraham, C., Francis, J., Hardeman, W., Eccles, M.P., Cane, J. & Wood, C. E. 2013. The behavior change technique taxonomy (v1) of 93 hierarchically clustered techniques: building an international consensus for the reporting of behavior change interventions. Ann Behav Med. 2013 Aug;46(1):81-95.
• Carlin, D., Houshmand, K., Rodriguez, S. & Talloen, J. 2023. To create lasting change, companies can draw on behavioral insights. McKinsey & Company.
• Müller, M. M., Böhm, K. L., & Renz, E. 2023. Pay or nudge employees into change? A theoretical and experimental investigation of the effect of nudging for organizational change. Managerial & Decision Economics, 44(6), 3666–3695.

Module 5:
• Hallsworth, M. 2023. A manifesto for applying behavioural science. Nature Human Behaviour, Nature, vol. 7(3), pages 310-322, March.

Suggested background reading material:
• Johnson, E. 2021. The elements of choice: Why the way we decide matters. Riverhead Books.
• Halpern, D. 2016. Inside the nudge unit: How small changes can make a big difference. Random House.
• Thaler, R. & Sunstein, C. 2009. Nudge: Improving decisions about health, wealth, and happiness. Penguin.

Toteutustapa

The study unit is completed independently following a recommended schedule for returning assignments and completing the whole course by a given deadline. Self-direction is required. The study unit does not include meetings except an online kick-off lecture on Tuesday, May 21, 2024 at 18.00 -19:00 (EET / Finnish time) in Zoom. No other lectures will be held which enables self-paced learning. You will study in a Canvas learning environment which includes learning material and assignments/tests.

The study unit contains planning and executing a small-scale real-life intervention applying behavioral insights, and analysis of an existing development plan from a behavioral perspective. You will also engage in discussions with other students in an online forum by posting conversation starters and commenting other students’ texts about different topics you have studied about. Otherwise, the study unit does not include working in pairs or groups.

You will receive individual feedback for some of the assignments from the teacher at the end of the course. During the course the feedback is based on automated assessment, and when applicable, giving out model answers after the assignments have been returned. Peer feedback is also utilized.

As a rule, the use of AI is permitted and its utilisation must always be disclosed. Sources must always be referenced, even if the text was produced with the help of an AI. The use of AI must be clearly indicated in a text whenever it is utilised in the production or editing of any texts or images. Remember to also explain how it has been utilised, for example in reading information sources and analysing material.

You can reach the instructor at the beginning of the course before mid-June and again after the end of the course. You and reach your fellow students through the Q&A discussion board on Canvas platform and you can also use the Canvas Inbox or email messages.

Työelämäyhteistyö ja/tai TKI

The study unit includes a practical exercise where the students are encouraged to solve practical problems at their everyday life, and to further consider their developmental work.

Toteutuksen tärkeät päivämäärät

Based on the degree regulations (2024), the student accepted for the implementation is required to confirm his/her participation by showing activity at the start of the study in the following way: In order to demonstrate activity, the student must be present at the first contact lesson or notify the teacher in charge of his/her absence to confirm his/her participation in the study. Registration will be rejected if the student does not report his/her absence at the start of the study or the reason for the absence cannot be considered justified. Another student can be taken in his place. The first contact lesson is the recommended kick-off lecture on Tuesday, May 21, 2024 at 18.00 -19:00 (EET / Finnish time).

The study unit is divided into 5 modules. The deadline for completing the whole course is August 11th, 2024. Students are strongly recommended to follow the given schedule with suggested assignment deadlines to ensure steady progression.

Retake deadline is September 15th, 2024.

Kansainvälisyys toteutuksella

Use of international academic literature. International student group.

Toteutuksen valinnaiset suoritustavat

According to the degree regulations (2024), "Students are entitled to apply for recognition of prior learning regardless of where, when and how the competence has been acquired. ... At Laurea, there are two different procedures for the recognition and accreditation of prior learning: a) accreditation of prior learning (competence acquired in higher education studies at another institution) and b) demonstration of competence (competence acquired in other ways). The recognition and accreditation of prior learning is initiated by the student themselves. The student is responsible for demonstrating and verifying their competence. The student is entitled to guidance for the recognition and accreditation of their competence." Further information in the student intranet.

You may also assess work-based learning as a way to acquire the competence needed. Read more in the student intranet.

Opiskelijan ajankäyttö ja kuormitus

Due to the special nature of grading logic with is based on the completed number of modules (see details further below), the total amount of effort per student may vary substantially. As a rule of thumb, modules 1 and 2 requires more effort than rest of the modules. Notice that for the intervention assignment in module 4 you may need to plan several days or weeks to be completed properly.

Sisältö ja sen jaksotus

In this course you will learn the basics of behavioral economics and how behavioral insights are applied in business and public policy context. You will gain understanding on behavioral biases and heuristics that are apparent in human behavior. Nudges and choice architecture are introduced as a mean to change people's behavior.

The study unit is divided into orientation module and five learning modules:
Module 1: General overview of behavioral insights in business and public policy
Module 2: Deeper into behavioral insights
Module 3: Ethical perspectives of behavioral interventions
Module 4: Behavioral insights into action
Module 5: Applying behavioral perspective

Arviointiasteikko

H-5

Lisätiedot

The study unit corresponds to the requirements of Master's level education.

The prerequisite for participation is always that the possible competence prerequisites according to the curriculum (previous study or similar competence) are fulfilled. The student is responsible for taking into account the prerequisite conditions.

Students of the Master's programme Behavioral Insights and Choice Architecture (Päätöksenteon ilmiöt ja valintamuotoilu johtamisessa) are not eligable to apply to this study unit.

The quality of the study unit implementation has been assessed and the self-evaluation report is available for example in Canvas or Teams.