Special Topics: Designing for Human Behavior: Incentives, Information & Policy

Catalog description

Engineers and policymakers often try to design mechanisms to shape human behavior. Yet even the best intentions can lead to design failures and backfire, producing worse outcomes overall. For example, a state might decide to increase fines for drivers caught texting while driving, only to discover that accident rates increase as drivers attempt to hide their phones (for instance, by texting with their phones on their knees). This course aims to develop practical tools for designing products, processes, and policies. We use economics, psychology, and behavioral science to analyze how design choices influence behavior and system outcomes. A special focus is on how different approaches influence reward systems. We also study what information is shared, who has it, and when it arrives. Students apply these tools to real-world cases, such as optimizing workplace incentives, improving traffic systems, and reducing social conflicts. The goal is to develop effective solutions that remain robust when people adapt. The course bridges theory and practice. Students will learn to design and critically assess mechanisms that shape human decision-making and policy while avoiding unintended consequences. Prior knowledge of game theory, economics, psychology, or behavioral economics is useful, but not required.