Learning and development in behavioral economics can inform, improve, or alter judgment and decision-making when faced with choices or uncertainty.
When developing learning, a best practice may be to examine how to best shape the learning paths to address the behavioral economic elements for each learning persona.
When developing learning, consider what are the:
- Heuristics - Learners make 95% of their decisions using mental shortcuts or rules of thumb.
- Framings - The collection of anecdotes and stereotypes that make up the mental filters individuals rely on to understand and respond to events.
- Structural factors - The conditions and environment the learner is making these decisions.
Applying behavioral economics principles means achieving learning outcomes by recognizing the learner’s perspective as a starting point. A learning path, story, or journey moves the learner toward a more informed judgment and decision making.
Further, many learners may have a misperception as a starting point for learning. The models they apply for learning may mean their biases can lead to an incorrect starting point when engaging with the learning.
“That people’s learning is governed by some amount of misperception seems unavoidable: The world is highly complex, and even the most sophisticated person will not be able to correctly perceive all aspects of her environment.” Mira Frick, Yale economist.
Utilizing stories in practices and decision trees learning scenarios enables the learner to better understand and overcome their initial biases and misperceptions they may have about the learning subject.