Behavioral Economics Lessons

Do humans defy logic and reason when they make financial decisions? Econ Essentials' NEW 4-part Behavioral Economics Digital Lesson Series explores how psychology relates to economic decision-making. Show your students that economics has the potential to be their most interesting subject.

INTRODUCTION

BEHAVIORAL ECONOMICS – LESSON ONE

INSTRUCTIONAL RESOURCES

Introduction to Behavioral Economics

High School

Are your students ‘Humans’ or ‘Econs’ in their decision-making processes? Encourage students to determine how rational their choices really are in this Digital Lesson Bundle. Students will learn through a series of scenarios, videos, questions, discussions, and challenges how behavioral economic theory can benefit an individual’s life, including their health and finances.

COMPANION VIDEO

Behavioral Economics 101

2 minutes 38 seconds

Behavorial economist have determined two types of decision-makers when predicting economic markets: ‘humans’ and ‘econs’. In this video, students will learn what qualities make up both types and how this knowledge will help influence their own choices.

LOSS AVERSION AND THE ENDOWMENT EFFECT

BEHAVIORAL ECONOMICS – LESSON TWO

INSTRUCTIONAL RESOURCES

How We Are Affected by Preference

High School

Do people place more value on gains or losses? How are people affected by preference when making financial decisions? With this Digital Lesson Bundle, teach students that people typically dislike losing financially more than they like gaining financially (loss aversion) and tend to overvalue what they already own (the endowment effect). Students will watch a video, participate in experiments, and undergo a challenge to gain an understanding of these concepts.

COMPANION VIDEO

How We Are Affected by Preference

2 minutes 46 seconds

Behavioral economists have determined that people hate to lose more than they like to win – this is called loss aversion. Behavioral economists have also determined that people overvalue what they already own—this is called the endowment effect. In this video, students will learn the psychology behind these concepts and encounter real-world examples.

The Question of Choice

BEHAVIORAL ECONOMICS – LESSON THREE

INSTRUCTIONAL RESOURCES

How We Are Affected by Others

High School

How much of people’s decision-making processes are they responsible for? To what extent are they “nudged” into making decisions based on the options provided? Encourage students to explore how decisions can be influenced by businesses (for profit) as well as by government and other organizations in this Digital Lesson Bundle. Students will watch a video, participate in a series of activities, and complete a thought-provoking challenge.

COMPANION VIDEO

How We Are Affected by Others

2 minutes 16 seconds

The outcome of our decision-making process can be affected by external factors that have been identified by behavioral economists, such as herding, choice architecture, and decision paralysis. In this video, students will explore these concepts to gain a deeper understanding of the complexity of their own decision-making.

Anchoring & The Power of Price

BEHAVIORAL ECONOMICS – LESSON FOUR

INSTRUCTIONAL RESOURCES

How We Are Affected by Price

High School

Are people’s buying decisions dictated more by preference or by price? Does the average person understand how to navigate price “anchoring”? This Digital Lesson Bundle challenges students to consider how their everyday lives and the economy at large are subtly and overtly influenced by price. Students will explore videos, engage in activities, and take a challenge designed to reinforce these concepts.

COMPANION VIDEO

How We Are Affected by Price

2 minutes 4 seconds

The interaction of purchasing and pricing provides behavioral economists with surprising insights into our everyday decision-making processes, through concepts like the anchoring principle and freemiums. In this video, students will become familiar with these concepts while learning how to make more informed buying decisions.