In a world fraught with uncertainty, how do we make the best decisions with what we know now (and what we don't)? This course examines how we make decisions under uncertainty by integrating research from psychology, cognitive science, and behavioral economics. Students will explore how people make decisions with incomplete data and how these processes differ from models of “optimal” decision-making. Key topics include risk and uncertainty, heuristics and biases, Prospect Theory vs. Expected Utility Theory, and moral decision making.
Through interdisciplinary case studies and real-world examples, students will investigate the ways in which decisions are shaped by risk, uncertainty, and bias with a focus on real-world applications. Using research from psychology we will explore questions such as: How do people make health-related decisions in the face of complex information and uncertainty? How can financial institutions design strategies to manage risk and reward? How do engineers weigh trade-offs in system design, resource allocation, and sustainability? What are the ethical implications of behavioral interventions?
Students will engage with contemporary challenges in decision-making, such as addressing inequality in healthcare access, optimizing financial portfolios for social impact, and developing systems that account for environmental sustainability. By the end of the course, students will be equipped with practical tools to apply decision-making principles across various disciplines. The course culminates in a final project, where students design their own behavioral intervention informed by research.