Take advantage of the possibilities of all learners
Can it influence engagement and encourage learners’ efforts? Tackling this question, educators and education designers began looking for answers in areas other than education. A new paradigm in interdisciplinary research has brought behavioral economics to the frame. By combining principles from multiple domains, the field of behavioral economics in education aims to create truly effective experiences that allow learners to make decisions, identify ways to engage with learning content, respond to behavioral trends, and promote optimal outcomes. The following analysis provides an overview of this emerging field and discusses key concepts and principles that can inform education design and delivery. Let’s get started.
Overview of Behavioral Economics
The field of behavioral economics redefines existing assumptions regarding the reasons and methods of human decision making. Behavioral economics began as an intersecting study of economic behavior analysis and principles of human psychology. As individuals attempt to predict how to approach, identify and consider their financial behavior, and how they deviate from purely logical or rational behavior, the field began to attract expert attention from other domains. Although current references consist primarily of academic manuscripts and research, the possibilities of behavioral economics in education provide interesting possibilities and avenues for further exploration, particularly for e-learning experts.
As academic success is an appropriate concern in educational circles, the application of behavioral economics is ripe for generating practical solutions. This discipline approaches performance, achievement, motivation and engagement from a psychological/behavioral/behavioral perspective, provides a roadmap for understanding and leveraging learners’ decision-making processes by leveraging practices that work in practice. So how can you use these insights to promote optimal results?
Behavioral economics principles for learning
To develop independent learners who effectively utilize learning opportunities, education professionals need to understand how learners approach learning experiences and how they operate within the educational environment. Although not exhaustive, the following list of behavioral economics principles can explain how to optimize learners’ needs to match behavioral trends.
1. Prospect Theory and Framing Effects
In behavioral economics, prospect theory shows how individuals decide on different alternatives and how learners recognize and evaluate risks and safe options in this context. Is the risk valuable based on yields of positive outcomes or avoidance of negative outcomes? As can be seen in another principle of behavioral economics, individuals do more to avoid losses than to earn profits. This is where framing effects can prove to be extremely useful.
The way information is presented affects individual perceptions. In other words, learners evaluate their results based on the situation and how they evaluate their results. Even if the benefits of two situations are equally attractive, human behavior and choices are still influenced by how each perceives the method presented. Thus, the so-called framing effects underscore the importance of a deliberate approach to influence the desired response from learners, such as increased effort and involvement.
In some words, when a challenge is presented as a challenge rather than an opportunity, learners look at it and approach it. This can lead to withdrawal or minimal effort from the learning process, as it is more motivated by loss avoidance rather than the uncertain probability of acquiring the line. People want immediate results, not far-reaching rewards in the future. Within this context, let’s look at two types of framing effects that can potentially be useful in a learning environment.
The target framing effect type of goal framing focuses on the outcome by approving the actions that lead to the desired outcome, either through “Do this, you get it” or “If you don’t do this, you don’t get it.” Attribute framing focuses on the merit/negatives of performing any action, depending on whether you want to encourage or manipulate learners. For example, “Early Starting Students” is different from “Only a few students who start late are doing well on this.”
By portraying insights from prospect theory and framing effects, educators and e-learning experts can better understand how learning concepts and practices can be presented within the classrooms of unmotivated learners. By considering this principle of behavioral economics, educators can guide them to increasing their efforts by shaping the narrative and highlighting that losses are undesirable or benefits.
2. Loss hatred and the bias of current situation
Loss aversion refers to how an individual (this context, learner) is motivated to avoid losses rather than achieving comparable benefits. The pain of loss is more intense than the joy of equal value. From an educational perspective, loss aversion can provide valuable insight into learner behavior and be applied strategically to improve educational design practices, and promote motivation and engagement.
Traditional educational environments have long used gain-based models (students have long used to earn excellent grades, pass exams, advance to the next class, etc.) as rewards for participation and achievement. Yet despite the fact that these incentives have merit, behavioral economics suggests that loss-based framing is indeed more useful, as it is consistent with the natural dislike of learners.
Currently, status quo bias refers to the cognitive tendency in which an individual prefers a situation to change rather than the current situation, even if the alternative offers a clear advantage. This bias is often adhering to what people know, such as well-known patterns and default options, because they fear loss, inertia, or uncertainty. In education, this psychological resistance shapes learning behaviors and influences performance, development, and critical and creative thinking.
Therefore, the principle of loss aversion and current quarter bias can be combined to enhance understanding of how learners respond within their learning environment. It can also guide us on how to establish an effective learning ecosystem where learners are not afraid to make unconventional choices or overcome losses for improvement.
3. anchor
Individuals rely heavily on the initial information they receive when making decisions. It is called an anchor. This is a form of cognitive bias and acts as a reference point. Even if the anchors whose initial information is arbitrary or unrelated still have a significant impact on judgment and actions. When it comes to learning, fixed plays a powerful role in shaping expectations, performance and motivation. Anchors also influence how learners approach assessments, set goals, respond to pre-established benchmarks, and evaluate themselves against peers.
For example, let’s say that the learner starts an online course where “this course usually takes 10 hours.” The cited time acts as a pre-established benchmark, anchor, forcing learners to complete it in this particular time frame. If the course is to be completed in 10 hours, learners will simultaneously consider this anchor as the minimum and maximum time they must invest and reach. The course creators who added this estimate and fellow learners who completed the module in perhaps 10 hours reinforced the reality of this time frame. If learners have exceeded 10 hours or do not reach them, do they think they could not do what they expected?
Therefore, anchors affect their behavior. Learners need autonomy to follow their own learning paths in a concrete way that works. Therefore, instructor designers should evaluate anchors during course creation and consider how they affect diverse learners. While fixation can constructively guide learners’ behavior, it must be carefully adjusted to avoid disappointment.
4. Selected paradox
Modern learners often get flooded with options and choices, from which they choose which careers to pursue. Still, too many options seem to be a problem with poor academic achievement. Can you do that? In behavioral economics, the principle of choice paradox suggests that some degree of choice is beneficial, but in fact many options overwhelm the learner, leading to decision fatigue and paralysis. Many options can discourage learners from making it immediately and discourage them from choosing to “deciding later.” Even if they made a decision, the knowledge that there were other options may not be dissatisfied with what they chose.
Furthermore, when selection overload increases cognitive overload, learners consume energy comparing options instead of investing bandwidth in actual learning. So, despite it being a controversial principle, education designers and educators need to recognize this paradox and manage how options are presented. Personalizing recommendations to individual students or setting default options within the manageable range of options can help both educators and learners participate and benefit in a more streamlined learning environment.
Of course, having options is a fundamental human right and supports the development of autonomous individuals. Therefore, if we choose to apply to our work (see?), it is important to remain critical of how we approach this principle of behavioral economics. Our focus should be on simplifying the decision-making process for learners, taking away valuable options and giving them a uniform, unchanging experience.
5. The essential motivation
The concept of motivation is not new in educational circles. Instructors constantly refine their techniques to ensure that learners are given sufficient attention and invested sufficient effort to achieve their learning goals. However, in behavioral economics, the concept of intrinsic motivation is not only a prerequisite for achieving goals, but also a powerful factor in effective and persistent learning. It means engaging in the task not by the reward of promotion and fame (exogenous motivation), but for the inherent satisfaction or interest it offers.
Although certainly not a fixed trait, endogenous motivation is shaped by context, expectations, and subtle psychological abilities. Therefore, we can focus on three core aspects that we describe during the educational design process so that learners are inherently motivated.
It is important that students allow choices, as they need to understand that they are in control of their learning. To avoid the selection paradox, try a more structured approach through manageable and meaningful options tailored to support each learner’s goals.
To achieve your goal, you must first have a purpose. Behavioral economics highlights the power of framing, not only does learning align with the learner’s broader goals, but it also brings real value and relevance.
Learners are motivated when they view progress as measurable or concrete. Providing metrics describing your journey to proficiency strengthens your efforts and helps students recognize their own improvements.
These core markers are not treatments for low motivation, but they can help guide educators and e-learning experts to create a rich curriculum that learners want to learn more.
Conclusion
The ability to recognize and positively impact learners’ perceptions of and experience the learning process can create better educational opportunities. Don’t think that behavioral economics principles are too specialized to bring true value to the learner’s audience. Understanding decision-making behavior is important to establish useful learning systems and experiences that will stick to, and the goal as an educator is to help learners enjoy their learning and invest in their learning. Still, some students may need a different approach to perform optimally. It’s good to have many alternative models that can be used and an extensive list of experts that can seek additional insights.
