3.0

credits

Average Course Rating

Behavioral finance is the application of psychology to financial markets and financial decision-making. Psychology is the basis for human desires, goals, and motivations, also, the basis for understanding perceptual illusions and cognitive biases. This course draws ideas and content from the most comprehensive survey on the emerging field of behavioral finance and the first textbook on behavioral corporate finance as well as four articles on the topic. The objective is to gain insight into the nature and structure of financial decisions, trace behavioral pitfalls in real world decisions and events such as those leading to failing mergers and acquisitions, or financial crises; and eventually to learn and develop techniques for debiasing our minds to perform better in the markets and corporations as well as in simple daily choices.