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 through the "behavioural" approach. In this perspective, the following topics will be covered: a) Empirical evidence on market efficiency; b) Factors influencing markets; c) Decision making and bisystemic theory; d) Heuristics and bias; e) Excessive security; f) Value theory and choices; g) Mental accounting and self-control; h) Nudging; i) Decisions under uncertain conditions.
Extended Syllabus - The "ortodox" economic and financial theory (hints)
- Empirical evidence on market efficiency.
- Decision making and bisystemic theory
o Attention and effort
o The associative mechanism
o Cognitive fluidity
o Standards, surprises and causes
o A mechanism to jump to conclusions
o How judgments are formed
o Answer an easier question
- Heuristics and biases
o The law of small numbers
o Anchors
o The science of availability
o Availability, emotion and risk
o Conjunction fallacy
o Less is more
o Stereotypes
o Regression towards the average
- Excessive security
o The illusion of understanding
o The illusion of validity
o Intuitions against formulas
o Expert intuition
o External vision
o Optimism
- Value Theory and Choices
o Bernoulli's theory
o The Prospect Theory
o The endowment effect
o Negative events
o The 4-cell scheme
o Rare events
o Risk policies
o Reversals
o Frame and reality
- The two selves
- Mental accounting and self-control
- Nudging
- Decisions and uncertainty.
Recommended Bibliography recommended readings:
• D. Kahneman, Thinking Fast and Slow, Farrar, Straus and Giroux, 2011.
• R. Thaler, Misbehaving: The Making of Behavioral Economics, 2015.
• R. J. Shiller, Irrational Exuberance, Crown Pub, 2006.
• G. Gigerenzer, Risk Savvy: How To Make Good Decisions, Allen Lane, 2014.
Methods of Provision
Teaching Methods Lectures; Discussion of scientific articles and participation in laboratory activities for experiments in economics and behavioral finance.
Evaluation methods Verification of learning:
The preparation of the students will be verified by means of an interview. The final grade will be expressed in thirtieths.
The subjects to be examined will reflect those covered during the course of teaching and present in the programme.