Why do we choose what we choose? Why do smart people make irrational decisions? And how can subtle changes in choice architecture, or “nudges”, lead to meaningful shifts in behavior?
This course explores the growing field of behavioral economics, which challenges the classical assumption that humans are rational agents. Using insights from psychology, neuroscience, and economics, we will examine how biases, heuristics, and social influences affect decision-making. We will engage with foundational theory and real-world applications, from public policy and consumer behavior to sustainability and financial decision-making. Through a blend of hands-on activities, case studies, and on-the-ground field observations, students will learn to analyze and design behavioral interventions that can shift choices for the better.
Italy—and Perugia in particular—will be used as a living lab. From recycling habits in Umbrian communities to tourist behaviors and food choices in local markets, students will explore how behavioral economics can be observed and applied across cultural contexts.

Learning Outcomes and Assessment Measures 
Below are the course’s learning outcomes, followed by the methods that will be used to assess students’ achievement for each learning outcome. By the end of this course, students will be able to:

• Explain and critically evaluate the core principles of behavioral economics, including bounded rationality, heuristics, biases, and the theory of nudges.
  • Assessment: Weekly Journal Reflections
• Apply behavioral frameworks (e.g., loss aversion, choice architecture, default effects) to analyze real-world decisions.
  • Assessment: Behavioral Audit Fieldwork Report
• Design and justify a behavioral intervention aimed at solving a specific problem related to sustainability, public health, education, or financial behavior in the Italian context.
  • Assessment: Final Project – “Design a Nudge” Presentation and Poster
• Conduct observational research and simple field experiments to gather data on everyday economic behavior in Perugia or nearby Umbrian towns.
  • Assessment: Field Journal & Behavioral Mapping Assignment
• Communicate behavioral insights effectively, using visuals and storytelling to make complex concepts accessible.
  • Assessment: Final Project – “Design a Nudge” Presentation and Poster