B2813 - Behavioral Economics for Sustainable Systems

Learning outcomes

This course is intended to allow students to become familiar with the literature in behavioral economics and decision making. The course has two facets: first it will uncover the inner workings of human biases and judgment and the students will gain insights into how inherent bias or poorly structured information can affect business decisions. Second, it will discuss how the adoption of a behavioral economics approach will support managers and decision makers to cope both with economic sustainability of businesses and environmental and social sustainability.

Course contents

Topic 1 – Framing the Challenge: Sustainability & Corporate Responsibility

What is sustainability? The triple bottom line (ESG). How companies contribute to and are affected by sustainability. How sustainability is measured (GRI, SDGs, ESG metrics). Key challenges for managers: trade-offs, long-term thinking, transparency.

Readings

• Adolph, J., & Beckmann, M. (2024). Corporate sustainability strategy: From definitional ambiguity toward conceptual clarification. Business Strategy and the Environment, 33(5), 4708-4729.
• Chen, S., Song, Y., & Gao, P. (2023). Environmental, social, and governance (ESG) performance and financial outcomes: Analyzing the impact of ESG on financial performance. Journal of Environmental Management, 345, 118829.
• Meuer, J., Koelbel, J., & Hoffmann, V. H. (2020). On the nature of corporate sustainability. Organization & Environment, 33(3), 319-341.
• Purvis, B., Mao, Y., & Robinson, D. (2019). Three pillars of sustainability: in search of conceptual origins. Sustainability science, 14(3), 681-695.
• Rasche, A., Morsing, M., Moon, J., & Kourula, A. (2023). Corporate sustainability–what it is and why it matters. Corporate sustainability: Managing responsible business in a globalized world, 1-26.
  
  

Topic 2 – Why Behavioral Economics? Biases in Corporate Decision-Making

Classical vs behavioral economics. Intention-action gap in corporate sustainability. Limits of information & incentives. Why behavior matters inside organizations, not just with consumers. Anchoring, status quo bias, loss aversion, framing, and present bias. Behavioral audit of typical corporate decisions.

Readings

• Fox, J. (2015). From “economic man” to behavioral economics. Harvard Business Review, 93(5), 78-85.

• Gino, F. (2017). The rise of behavioral economics and its influence on organizations. Harvard Business Review, 2-4.
• Kahneman, D. (2011). Thinking Fast and Slow. New York: Farrar, Straus and Giroux.
• Kahneman, D., Knetsch, J. L., & Thaler, R. H. (1991). Anomalies: The endowment effect, loss aversion, and status quo bias. Journal of Economic perspectives, 5(1), 193-206.
• Kahneman, D., Lovallo, D., & Sibony, O. (2011). Before you make that big decision. Harvard business review, 89(6), 50-60.
• Thaler, R. and Sunstein, C. (2009) Nudge: Improving Decisions about Health, Wealth and Happiness, London: Penguin.

Topic 3 – Designing for Environmental Sustainability: Nudges, Choice Architecture & Behavioral Tools

Principles of choice architecture in the workplace, Defaults, salience, framing, and feedback, Social norms & peer comparisons for internal engagement, Ethical considerations: motivation vs manipulation; Behavioral tools applied to environmental sustainability; Nudges for energy conservation, waste reduction, and emissions

Recommender systems & AI-assisted green decision-making; Feedback loops in logistics, supply chain, and procurement.

Readings

• Sunstein, C. R. (2021). Nudging: A Very Short Guide. Journal of Consumer Policy, 44(3), 451–459. https://doi.org/10.1007/s10603-020-09423-1
• Ferraro, P. J., & Price, M. K. (2013). Using Non-Price Incentives to Influence Behavior: Evidence from a Large-Scale Field Experiment. Review of Economics and Statistics, 95(1), 64–73. https://doi.org/10.1162/REST_a_00344
• Allcott, H. (2011). Social Norms and Energy Conservation. Journal of Public Economics, 95(9–10), 1082–1095. https://doi.org/10.1016/j.jpubeco.2011.03.003
• Felfernig, A., Jeran, M., & Leitner, G. (2023). Recommender Systems for Sustainability: Overview and Research Issues. Frontiers in Big Data, 6, 1284511. https://doi.org/10.3389/fdata.2023.1284511

Topic 4 - Environmental Sustainability

Behavioral tools for energy, waste, and emissions, Feedback systems in logistics, production, and operations, Diagnosing and testing behavioral interventions (e.g., A/B testing), Industry-specific nudges and interventions

Readings

• Brekke, K. A., & Johansson-Stenman, O. (2008). The behavioural economics of climate change. Oxford Review of Economic Policy, 24(2), 280–297.
• Enste, D., & Potthoff, J. (2023). Behavioral economics in companies: Nudging green behavior. IW-Report No. 26/2023.
• Rosenkranz, S. et al. (2017). Using behavioral insights to make firms more energy efficient: A field experiment on the effects of improved communication. Energy Policy, 108, 184–193.
• Carrico, A. R., & Riemer, M. (2011). Motivating energy conservation in the workplace: An evaluation of the use of group-level feedback and peer education. Journal of Environmental Psychology, 31(1), 1–13.
• Zacher, H. et al. (2023). Employee green behavior as the core of environmentally sustainable organizations. Annual Review of Organizational Psychology and Organizational Behavior, 10(1), 465–494.
• Delmas, M. A., & Aragon-Correa, J. A. (2016). Field experiments in corporate sustainability research: Testing strategies for behavior change in markets and organizations. Organization & Environment, 29(4), 391–400.

Topics 5: Social sustainability

Organizational culture, identity, inclusion, Peer framing, ethical norms, and well-being

Employee engagement in sustainability behavior

Readings:

• Ajzen, I. (1991). The Theory of Planned Behavior. Organizational Behavior and Human Decision Processes.
• Hoffman, A. J., & Bazerman, M. H. (2007). Changing practice on sustainability: Understanding and overcoming the organizational and psychological barriers to action. In Organizations and the Sustainability Mosaic. Edward Elgar Publishing.
• Pinel, H. et al. (2025). Nudges in workplace environments—A systematic review and research agenda. Journal of Personnel Psychology, 24(3), 109–123.
• Yamane, T., & Kaneko, S. (2022). The Sustainable Development Goals as new business norms: A survey experiment on stakeholder preferences. Ecological Economics, 191, 107236.
• Rode, J. et al. (2021). How to encourage business professionals to adopt sustainable practices? Experimental evidence that the ‘business case’ discourse can backfire. Journal of Cleaner Production, 283, 124618.
• Lee, C. C. et al. (2023). Examining the impacts of ESG on employee retention: A study of generational differences. Journal of Business and Management, 29(1), 1–22.

Topic 6: Governance Sustainability

Framing compliance and risk, ESG reporting and disclosure, Board composition and long-term accountability

Readings:

• Naciti, V. (2019). Corporate governance and board of directors: The effect of a board composition on firm sustainability performance. Journal of Cleaner Production, 237, 117727.
• Ferrari, G. et al. (2022). Do board gender quotas matter? Selection, performance, and stock market effects. Management Science, 68(8), 5618–5643.
• Alkhawaja, A. et al. (2023). Board gender diversity, quotas, and ESG disclosure: Global evidence. International Review of Financial Analysis, 90, 102823.
• Sunstein, C. R. (2021). Nudging: A Very Short Guide. Journal of Consumer Policy, 44(3), 451–459.
• Thaler, R., & Sunstein, C. (2009). Nudge: Improving Decisions About Health, Wealth, and Happiness. Penguin.

Topic 7: Opportunistic Sustainability Communication: Greenwashing & Social-Washing
Greenwashing, social-washing, symbolic actions, reputational risk, ESG disclosure credibility, stakeholder trust, deceptive signaling, regulatory accountability

Readings:

• Forliano, C., Battisti, E., De Bernardi, P., & Kliestik, T. (2025). Mapping the greenwashing research landscape: a theoretical and field analysis. Review of Managerial Science, 1-50.
• Gatti, L., Grappi, S., & Romani, S. (2023). Research in the greenwashing field: concepts, theories, and future directions. Journal of Management & Governance. https://doi.org/10.1007/s10997-023-09686-5
• Schaltegger, S., & Hörisch, J. (2017). In search of the dominant raonale in sustainability management: legimacy-or profit-seeking?. Journal of Business Ethics, 145, 259-276
• Zhan, X., Lian, X., & Dai, S. (2025). Correcting or Concealing? The Impact of Digital Transformation on the Greenwashing Behavior of Heavily Polluting Enterprises. Sustainability, 17(1), 356.

 

Readings/Bibliography

Readings and Lecture Materials

For each topic, a list of core readings is provided in the syllabus. Additional readings and case materials may be assigned during the course and will be communicated by the instructor.

Lecture Notes

Lecture slides and notes will be made available on the IOL platform prior to each session. Please note that these materials may be revised or supplemented after the class based on in-class discussion.
While lecture notes provide a useful overview, they are not a substitute for the assigned readings. They often do not include the analytical depth or contextual detail covered in the core literature, which are essential for a comprehensive understanding of the course content.

Teaching methods

Teaching Approach

The course combines traditional lectures with student-led presentations. Each session is designed to be highly interactive, encouraging active participation and critical thinking.
Students are expected to prepare group presentations and to engage actively by asking questions and providing feedback on the presentations of their peers. This collaborative format aims to foster dialogue, reflection, and deeper understanding of behavioral approaches to sustainability in organizational contexts.

Assessment methods

Attending Students
The final grade for attending students will be based on:

• Class participation and in-class group assignments and presentations: 50%

• Final written exam: 50%

Active participation is essential. Students are therefore expected to regularly attend and engage in class sessions, both through their own presentations and by contributing to the discussions following other groups’ work.

Non-Attending Students
Students who do not attend the course will not participate in the group presentation and be evaluated through a written exam, which includes both multiple-choice and open-ended questions based on the full set of required readings.

Please note: Exam dates are fixed as per the official schedule and cannot be changed. Requests for additional or alternative dates will not be accepted.

The maximum possible grade is 30 cum laude. The grading scale is the following:

<18: Fail
18-23: Sufficient
24-27: Good
28-29: Very good
30: Excellent
30 cum laude: Outstanding (the instructor was impressed)

Grade rejection: students can reject the grade obtained at the exam only once. To this end, they must email a request to the instructor within the date set for registration. The instructor will confirm reception of the request asap.

Teaching tools

Course Materials and Group Work

Students will work in groups to prepare presentations that will be discussed in class. These presentations are an integral part of the course and contribute to the final evaluation.

Lecture slides, notes, and all required readings will be made available on the VIRTUALE platform: https://virtuale.unibo.it .
Students are expected to regularly consult the platform for updates and materials.

Office hours

See the website of Natalia Montinari