Behavioral Economics Activities

ECON: Risk and Loss Aversion

Students will make decisions that involve different levels of risk and loss.

PLAY: Dollar Auction Game

In this activity, students will be able to:

  • Demonstrate the effect of cognitive biases in making decisions
  • Discuss the process of making decisions that involve Sunk Costs

ANALYZE: Change a Bad Financial Habit

In this activity, students will be able to:

  • Examine a bad financial habit of theirs that they would like to change 
  • Understand the Habit Cycle as described by Charles Duhigg in his book, The Power of Habit
  • Create and execute a plan to help them change their bad financial habit
  • Reflect on how the Habit Cycle empowers them to change their habits 

ANALYZE: The Influence of Advertisements

In this activity, students will be able to: 

  • Understand the various strategies advertisers use to influence consumers
  • Analyze 6 different commercials and identify which strategies advertisers are using most effectively

ANALYZE: FOMO & Herd Mentality in Advertisements

In this activity, students will be able to:

  • Identify advertisements that use the cognitive biases FOMO and Herd Mentality
  • Analyze how FOMO and Herd Mentality influence consumers
  • Create their own advertisement using FOMO and Herd Mentality

CREATE: You Have Enough Stuff! Social Media PSA

In this activity, students will be able to: 

  • Explain what Hedonic Adaptation is and how it can affect our personal finances
  • Create a PSA on a social media platform of their choice 
  • Identify strategies to counteract the effect of Hedonic Adaptation

PLAY: Roll with the Market

In this activity, students will be able to: 

  • Understand the psychology behind some of the investment decisions we make.

PROJECT: The Ultimate Social Media Strategy

In this activity, students will be able to:

  • Identify marketing tactics and cognitive biases used in social media that can influence consumers
  • Work in groups to create an engaging social media marketing strategy
  • Pitch their social media marketing strategy to the class
  • Discuss their awareness of cognitive biases and how they influence consumer behavior