Psychological Aspects of Decision-Making

This course introduces students to psychological aspects of decision-making processes in various areas of everyday life. The course will sheds light on egoistic and altruistic mind-sets, fairness, and happiness. In addition, we study such types of social interactions as negotiations, and group behavior.

The psychology of money and various types of financial behavior are also discussed. In this course students get acquainted with heuristics and frames that interfere with making conscious choices. Therefore, the course will be useful for those who are interested in finding explanations for the irrational actions of people.

A significant part of the course is devoted to studying emotions. For instance, students will learn to better recognize emotions and analyze them. In addition, the so-called “nudge theory” will be considered. This theory was developed by Cass Sunstein and Richard Thaler to improve decisions concerning health, wealth, and happiness, while Richard Thaler subsequently received the Nobel Prize for summarizing the results of previous studies and developing this theory.