B8241 - Behavioral Economics and Collective Well-being

Learning outcomes

The course analyzes, through the tools of behavioral economics, how to organize decision-making processes to improve individual and collective outcomes. At the end of the course, students will be able to understand the psychological foundations of altruism and social behavior, using these concepts to design nudges that benefit individuals and society; critically evaluate the effectiveness of nudges in various contexts, identifying when they can enhance individual and social well-being; and develop and support nudging strategies that consider ethical implications and promote equitable social change.

Course contents

The course will cover the following topics:

1. Foundations of Behavioral Economics and Social Preferences
Classical vs. behavioral models of decision-making
Bounded rationality, heuristics, and cognitive biases
Prospect theory and decision anomalies
The psychology of altruism and cooperation
Fairness, reciprocity, and inequality aversion
Social value orientation and prosocial behavior

2. Behavioral Drivers of Collective Welfare
How individual biases aggregate in group settings
Public goods games and the tragedy of the commons
Collective action problems and behavioral solutions

3. Designing Nudges for the Public Good
Choice architecture and default effects
Salience, framing, and simplification
Social norms and peer comparisons in prosocial behavior

4. Evaluating the Impact of Nudges
Criteria for effectiveness: impact, cost, persistence
Experimental methods: RCTs, A/B testing, field experiments
Behavioral metrics for well-being and policy outcomes

5. Ethics of Behavioral Interventions
Autonomy, paternalism, and manipulation
Transparency and accountability in nudging
Equity and distributive implications

6. Behavioral Insights in Policy and Institutions
Applications in health, education, energy, taxation
Case studies of behavioral policy in governments and NGOs
Institutionalizing behavioral insights (e.g., nudge units)

7. Designing for Behavioral Change in Practice
Group presentations and applied projects
Co-designing interventions for real-world contexts
Implementation challenges and scalability

Readings/Bibliography

Readings and Lecture Materials

Kahneman, D. (2011). Fast and slow thinking. Allen Lane and Penguin Books, New York.

Leonard, T. C. (2008). Richard H. Thaler, Cass R. Sunstein, Nudge: Improving Decisions about Health, Wealth, and Happiness: Yale University Press, New Haven, CT, 2008, 293.

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.

For all students

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