Error message
User error : Failed to connect to memcache server: druportbe01:11211 in dmemcache_object() (line 415 of /production/drupal/dim_prod/drupal/d7cl4/prod/unich/releases/7/web/sites/all/modules/contrib/memcache/dmemcache.inc ).
BEHAVIORAL ECONOMICS AND FINANCE Single discipline educational activity
Course Sheet Academic Year of enrolment:
Professor and Collaborators:
Hours of classroom activity:
Objectives
Contents The course presents the contribution to the "orthodox" economic and financial theory obtained thanks to the "behavioral" approach. In this perspective the following topics will be discussed: a) Empirical evidence on market efficiency; b) Factors that influence the markets; c) Decision making and bisystemic theory; d) Heuristics and bias; e) Overconfidence; f) Value theory and choices; g) Mental accounting and self-control; h) Nudging; i) Decisions under conditions of uncertainty.
Extended Syllabus • "Orthodox" economic and financial theory (outline)
• Empirical evidence on market efficiency.
• Factors that influence the markets
o Structural factors
o Cultural factors
o Psychological factors
• Decision making and bisystemic theory
o Attention and effort
o The associative mechanism
o Cognitive fluidity
o Norms, surprises and causes
o A mechanism to jump to conclusions
o How judgments are formed
o Answer an easier question
• Heuristics and bias
o The law of small numbers
o Anchors
o The science of availability
o Availability, emotion and risk
o Conjunction fallacy
or Less s more
o Stereotypes
o The regression towards the average
• Excessive security
o The illusion of understanding
o The illusion of validity
o Insights against formulas
o Expert intuition
o External vision
o Optimism
• Value theory and choices
o The Bernoulli theory
or La Prospect Theory
o The endowment effect
o Negative events
o The 4-cell scheme
o Rare events
o Risk policies
o Inversions
o Frame and reality
• The two selves
• Mental accounting and self-control
• The nudging
• Decisions under conditions of uncertainty.
Recommended Bibliography recommended readings:
• D. Kahneman, Pensieri lenti e veloci, Mondadori, 2012
• R. Thaler, Misbehaving: The Making of Behavioral Economics, 2015;
• R. J. Shiller, Euforia irrazionale, Il Mulino, 2009.
• G. Gigerenzer, Imparare a rischiare, Cortina Editore, 2015.
Teaching Methods Frontal lessons; discussion of scientific articles and participation in laboratory activities for economics and behavioral finance experiments; drafting a project work.
Evaluation methods Verification of learning:
The verification of the students' preparation will take place through the discussion of a scientific article; the discussion of a project work and a colloquium. The final mark will be expressed in thirtieths.
The topics under examination will reflect those dealt with during the course and present in the program.