The relatively new field of behavioral economics combines the conceptual frameworks of conventional economics with the observation-based insights of psychology. Together, they provide a way of better understanding decision-making in the real world. Knowing the predictable patterns of human behavior leads to more efficient, rational, and profitable results. 

Whether you’re a corporate executive, a project leader, an entrepreneur, or a non-profit organizer, making smart decisions is essential to your success. Understanding how people make decisions and recognizing the predictable biases and blind spots that lead to sub-optimal outcomes will make you more effective in your work. 

Seeing Economics as a Model (with a Lot of Assumptions Underneath) is the second module in our survey of Behavioral Economics, “Behavioral Economics and Decision Making.” This program is designed for anybody whose work requires leading, influencing, selling, or collaborating. Prior coursework in economics is not required. The insights and tools in this program are directly applicable by:

  • Senior and mid-level leaders who work with their teams to make long-term investments in products, operations, and people
  • Entrepreneurs who need to know the pitfalls of relying only on instinct and intuition
  • Sales & marketing professionals who can simplify their customers’ purchase decisions with smart choice architecture
  • Business analysts who want to get their insights across more effectively by understanding context and framing

Course Key Concepts: Behavioral economics, Economics, Managerial economics, Psychology, Management, Decision-making

Learning Objectives
  • Identify key assumptions that conventional economics is built on 
  • Discover two or more working definitions of irrationality
  • Recognize the differences between neoclassical, managerial, and behavioral economics
  • Explore how arbitrage moves one closer to Pareto efficiency
Last updated/reviewed: August 17, 2023
5 Reviews (12 ratings)


Member's Profile
I liked this course but was hoping to get a bigger serving of the last module which dealt much more with behavioral economics. If neo-classical & managerial economics are your interest then the class will suit very well.

Member's Profile
A lot of information and some terms and info discussed didn't seem to have been taught, so it got a little over my head. Still interesting and enjoyable.

Anonymous Author
I really liked the content. I would have liked it to go deeper. I hope that these instructors produce more content.

Anonymous Author
Good, relatable examples and graphs. Strong presentation.

Member's Profile
The instructors were engaging. A good presentation.

Course Complexity: Foundational

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
  Economics as a Model3:31
  Decision Behaviors The Dueling Assumptions5:50
  The 1-2-3 of The Neoclassical Model3:19
  Assumptions About Making Consumption Choices4:49
  Making The Optimal Tradeoffs at The Margin 11:38
  Managerial Economics Part 1 Defining the Feasible Set12:58
  Managerial Economics Part 2 Finding The Optimum Mix9:47
  Pareto Optimality And The Assumptions Underneath3:03
  Economists’ Assumptions About Decision Making 7:18
  Working Definitions of Irrationality2:51
  Seeing Economics as a Model (with a Lot of Assumptions Underneath) 1:05:03
  Slides: Seeing Economics as a Model with a Lot of Assumptions UnderneathPDF
  Seeing Economics as a Model with a Lot of Assumptions Underneath Glossary/IndexPDF