Our everyday decisions––from where we go to what we eat––are influenced by small factors that are hidden from plain sight. The field of behavioral economics examines each of these day-to-day choices, resulting in a progressive understanding of human behavior that combines both psychology and economics. A growing number of sectors and institutions are increasingly seeking the expertise of behavioral economists to shape their policies.
In this guide, we will help you better understand this unique field of study and explore six options for those interested in pursuing a career in behavioral economics.
What is Behavioral Economics?
Behavioral economics is the study of judgment and choice. According to Harvard Business Review, it “combines insights from psychology, judgment and decision making, and economics to generate a more accurate understanding of human behavior.”
In many traditional economic models, there still remains inexplicable human behavior that skews the data. This is where behavioral economics steps in. The study of behavioral economics can help us understand these anomalies and gain a fuller understanding of human behavior, preferences, and errors in cognition.
Behavioral economics is leveraged across a wide range of industries to better understand consumer behavior. For example, a sales team may use it to increase response rates or improve customer experience; a health system may leverage principles of behavioral economics in an attempt to increase organ donation.
Earning a master’s in behavioral economics can open up many career opportunities. Below are six career paths you may pursue with a master’s in behavioral economics.
Request info6 Careers in Behavioral Economics
Market Research Analysts
Research is a central part of behavioral economics, as the field is always evolving. After achieving your degree, you may be suited for a market research analyst position. Researchers and analysts may work in either the private or public sector to help develop and implement economic theories rooted in psychology. By researching consumer and business choices, researchers can surmise patterns of human behavior that then drive decision-making across industries.
Consultants
Consulting is probably the most wide-reaching career available with a degree in behavioral economics, as it allows you to offer expertise to various professional sectors. Behavioral economic consultants work to understand the needs of their clients and develop unique business plans and solutions based on psychology and market research. As a consultant, you could choose a specialized sector––such as health care or education––and work either independently or as part of a private firm.
Professors
As the field of behavioral economics grows, so does the need for qualified instructors. As a professor of behavioral economics, you can work directly with students and typically perform your own research studies on the side through your college or university. If you’re looking to make an impact on the next generation of behavioral economists while still pursuing research, this is a great career choice. However, a Ph.D. in behavioral economics is typically required to reach this level.
Policy Advisers
Many behavioral economic specialists will work as advisers for public policy. This can include working as a part of a local or national government to develop effective and comprehensive communications, budgets, and proposals. Behavioral economics allows advisers to look at the small ways they can influence citizens toward positive, prosocial behaviors such as eating healthily or having more eco-friendly lifestyles.
Advertisers
Principles of behavioral economics are used every day in marketing and advertising. Entering the advertising field as a graduate of a behavioral economics program gives you a competitive edge and immense insight into the minds of consumers. By better understanding the decision-making of your target audience, you can more effectively advertise to them too.
Behavioral Finance Specialist
For individuals with a master’s in behavioral economics, the financial sector is a booming haven. Banks and other financial institutions hire behavioral finance specialists to assess the good and bad ways that people invest. The behavioral finance expert takes up the task of creating methods that effectively improve investment tools based on their assessment.
The financial sector greatly depends on behavioral finance experts to create innovations that produce better tools that facilitate the massive sector.
Behavioral Economics Programs & Degrees
While behavioral economics focuses on the economy, it is quite distinct from a traditional economics degree. Students pursuing a degree in behavioral economics dive deeper into the theories covered in economics and seek out the mechanisms and decision-making behind these models.
To pursue a career in behavioral economics, you must first acquire a degree (many employers prefer an advanced degree) and work to gain experience in the field. The Chicago School of Professional Psychology offers an online master’s in Behavioral Economics degree designed to prepare students for a successful career in consulting, research, public service, and more.
Our Behavioral Economics program builds off an advanced foundation of psychology and integrates economics, financial literacy, public policy, and consumer psychology, providing a comprehensive understanding of human decision-making and consumer behavior.
For more insight into behavioral economics, check out these 5 examples of behavioral economics in your everyday life.
Learn more about our online master’s in Behavioral Economics program here, or fill out the form below to request more information about our programs.