How to think like a Behavioural Economist



Overview

This course introduces students to the central ideas of behavioural economics and how they depart from traditional Neo-classical models of rationality. Drawing on psychology, cognitive science, and experimental economics, the course examines how real people make decisions under conditions of scarcity, uncertainty, and constraint.

Students will critically assess concepts such as bounded rationality, heuristics, mental accounting, and present bias. Topics include the role of attention, fairness, borrowing behaviour, the scarcity trap, and the behavioural foundations of poverty and prosperity. Through lectures, discussion, and case studies, students will develop an understanding of how behavioural economic insights can inform policy, development strategy, and everyday economic life.

Core readings include A Course in Behavioural Economics by Erik Angner and Scarcity by Sendhil Mullainathan and Eldar Shafir. The course assumes no prior study of economics and is suitable for learners from diverse academic backgrounds.

Programme details

Courses starts: 21 Apr 2026

Week 1: Introduction to Scarcity – Explore the psychological and behavioural consequences of not having enough, using the core framework from Mullainathan and Shafir.

Week 2: Scarcity and Attention – How scarcity captures cognitive bandwidth and influences decision-making quality.

Week 3: Choice Under Scarcity – Evaluate how resource constraints distort individual choice using behavioural models.

Week 4: Decision-Making and Fairness – Examine behavioural responses to inequality and distributive justice.

Week 5: Borrowing Behaviour – Understand time inconsistency, debt traps, and how behavioural insights explain financial decision-making.

Week 6: The Scarcity Trap – Investigate feedback loops that keep individuals and societies in persistent deprivation.

Week 7: The Nature of Poverty – Delve into poverty as a behavioural and cognitive phenomenon, beyond income metrics.

Week 8: The Road to Prosperity – Discuss behavioural policy interventions for financial inclusion, education, and well-being.

Week 9: Organisational Scarcity – Apply behavioural ideas to firms and institutions, exploring scarcity's impact on productivity.

Week 10: Life and Scarcity – Synthesise insights from the course to understand how behavioural economics helps us lead better, more informed lives.

Certification

Credit Accumulation Transfer Scheme (CATS) Points

Only those who have registered for assessment and accreditation will be awarded CATS points for completing work to the required standard. Please note that assignments are not graded but are marked either pass or fail. Please follow this link for more information on Credit Accumulation Transfer Scheme (CATS) points

Digital Certificate of Completion 

Students who are registered for assessment and accreditation and pass their final assignment will also be eligible for a digital Certificate of Completion. Information on how to access the digital certificate will be emailed to you after the end of the course. The certificate will show your name, the course title and the dates of the course attended. You will be able to download the certificate and share it on social media if you choose to do so.

Please note students who do not register for assessment and accreditation during the enrolment process will not be able to do so after the course has begun.

Fees

Description Costs
Course fee (with no assessment) £300.00
Assessment and Accreditation fee £60.00

Funding

If you are in receipt of a UK state benefit, you are a full-time student in the UK or a student on a low income, you may be eligible for a reduction of 50% of tuition fees. Please see the below link for full details:

Concessionary fees for short courses

Tutor

Dr Sangaralingam Ramesh

Sangaralingam Ramesh is an Economics Tutor in the Department for Continuing Education at the University of Oxford and a Senior Teaching Fellow in Economics at University College London, UK. He has been an Associate Professor in Economics at the Université Paris Dauphine GBD and Economics Module Leader at Kings College London

Course aims

To provide a conceptual and applied introduction to behavioural economics, focusing on how psychological and social factors affect decision-making under conditions of scarcity, uncertainty, and constraint.

Course objectives

By the end of the course, students will be able to:

  • Understand the foundational concepts of behavioural economics and how they differ from traditional models.

  • Explain key behavioural concepts such as bounded rationality, cognitive bias, heuristics, mental accounting, and present bias.

  • Apply behavioural theories to real-world economic behaviour, including borrowing, saving, consumption, and poverty.

  • Critically analyse how behavioural insights inform policy design and economic development strategies.

  • Reflect on their own decision-making processes and economic behaviours through the lens of behavioural economics.

Teaching methods

The course is taught through weekly two-hour sessions consisting of an interactive lecture and seminar-style discussion. Each week features a combination of theory, real-world examples, and active student engagement via small-group exercises, class debates, and online discussion forums. Students will also engage with case studies and key readings from both academic literature and popular texts to deepen their understanding.

Learning outcomes

By the end of the course, students will be able to:

  • Describe and distinguish between behavioural and neo-classical economic assumptions.

  • Identify cognitive and emotional factors that influence individual economic behaviour.

  • Interpret economic decision-making using behavioural concepts such as loss aversion, status quo bias, and framing effects.

  • Evaluate the effectiveness of behavioural interventions (e.g. nudges) in public policy and development contexts.

  • Communicate behavioural insights effectively in writing and discussion, using real-world examples.

Assessment methods

Students registered for assessment will complete the following:

  • Formative assessment: a 750-word reflective essay based on content from Weeks 1–4. This is designed to help students consolidate early learning and prepare for the summative essay.
  • Summative assessment: a 1,500-word essay.

Only those students who have registered for assessment and accreditation will submit coursework.

Application

To be able to submit coursework and to earn credit (CATS points) for your course you will need to register and pay an additional £60 fee per course. You can do this by ticking the relevant box at the bottom of the enrolment form or when enrolling online. Please use the 'Book now' button on this page. Alternatively, please complete an enrolment form (Word) or enrolment form (Pdf).

Students who do not register for assessment and credit during the enrolment process will not be able to do so after the course has begun. If you are enrolled on the Certificate of Higher Education you need to indicate this on the enrolment form but there is no additional registration fee.

Level and demands

The Department's Weekly Classes are taught at FHEQ Level 4, i.e. first year undergraduate level, and you will be expected to engage in a significant amount of private study in preparation for the classes. This may take the form, for instance, of reading and analysing set texts, responding to questions or tasks, or preparing work to present in class.

Terms & conditions for applicants and students

Information on financial support