Behavioral Finance
-
1.1k
-
- Write review
Overview
Class Central Tips
Behavioral finance is the study of these and dozens of other financial decision-making errors that can be avoided, if we are familiar with the biases that cause them. In this course, we examine these predictable errors, and discover where we are most susceptible to them. This course is intended to guide participants towards better financial choices. Learn how to improve your spending, saving, and investing decisions for the future.
Syllabus
- Week 1
- Welcome to the course! In this first week, we'll look at the classical economic model of consumer choice, which assumes that all of the decisions that we make are sensible, or “rational.” Once we have examined the underlying theory of how people should behave (especially around financial decisions), we will move on to examine how people do behave. We will focus in particular on situations in which we are most inclined to make decisions that appear to defy rational choice axioms.
- Week 2
- Welcome to the second week. In this session, we will discover how our minds are inclined to distort probabilities, and either underestimate or overestimate the likelihood of certain outcomes. We’ll also learn about “heuristic-driven bias”: the tendency to use rules of thumb that simplify the process of making decisions, but can also lead to predictable errors. These biases negatively affect our decision-making far more than we might expect; especially when the outcome of the decision has great significance for us.
- Week 3
- In the final week of the course, we will see multiple examples of how mental heuristics can lead us to make predictably sub-optimal financial decisions, both individually and across the entire financial markets. We will also discuss the many ways in which you can now improve your financial decision-making because of your deeper understanding of the innate biases that have tripped you up in the past!
Taught by
Emma Rasiel
Tags
Related Courses
-
Meeting Investors' Goals
University of Geneva
5.0 -
Behavioral And Personal Finance
Indian Institute of Technology, Kharagpur, NPTEL
-
The Language and Tools of Financial Analysis
University of Melbourne
3.9 -
Finance for Managers
IESE Business School
-
Buyer Behaviour and Analysis
Curtin University
1.0 -
Corporate Finance II: Financing Investments and Managing Risk
University of Illinois at Urbana-Champaign
Reviews
3.8 rating, based on 4 reviews
-
Elco Lakwijk completed this course, spending 4 hours a week on it and found the course difficulty to be medium.
Good concise course on behavioral finance with emphasis on the many forms of behavioural biases. Some basic economic knowledge is advised to understand the graphs and statistics and probability calculations that are made. -
Whilst supposedly an introductory course on behavioural finance, the concepts are too concisely taught. The stories and analogies in the readings are interesting and really challenge readers to check their own biases. However, even after reading the readings, the exams are quite confusing to understand. Mainly because the concepts were not explained deeply so it's confusing. It's better to take other behavioral economics courses such as BE101x by University of Toronto or read Richard Thaler's book Nudge - which basically covers similar topics but explained in more in depth.
-
Martin Dunn completed this course.
-
Ossama Said Zaiter completed this course.