Behavioral economics is a new way of studying economics where economic decision making has been more humanized which helps us better understand the world around us. It questions some of the assumptions of standard or traditional economics and complement it with concepts borrowed primarily from the domains of psychology. This course introduces important concepts of behavioral economics like mental accounting, prospect theory, present bias, inequality aversion along with the tools used for developing such ideas. Further, it also deals with the applications of these concepts in diverse settings like stock market, health care, auctions etc.