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.
Coming Soon: Check back in February and April to download the additional lessons, challenges, and videos to bring more Behavioral Economics concepts to life in your classroom.
BEHAVIORAL ECONOMICS – LESSON ONE
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.
2 minutes 38 seconds
Behavorial economists 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.
BEHAVIORAL ECONOMICS – LESSON TWO
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.
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.
BEHAVIORAL ECONOMICS – LESSON THREE
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.
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.