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| Semester | fall semester 2021 |
| Course frequency | Every fall sem. |
| Lecturers | Ola Mahmoud (ola.mahmoud@unibas.ch, Assessor) |
| Content | This course describes how individuals and firms make financial decisions, and how those decisions might deviate from those predicted by traditional financial or economic theory. Students will explore the existence of psychological biases in financial decision-making, and examine the impacts of these biases in financial markets and other financial settings. The course examines how the insights of behavioral finance complements the traditional finance paradigm. The objective and purpose of this course is to provide an in-depth discussion of the modern development in behavioral finance. Theory, empirical, and experimental evidence will be discussed. We will review the decision-making process along with the different biases and paradoxes that go with it, learn about the major behavioral economics theories, and study the applications in the context of financial decision making. |
| Learning objectives | The objective of this course is to introduce the principles and concepts of behavioral economics as applied to financial decision making. Students will gain an understanding of how investors and individuals in general make financial decisions. Upon successful completion of this course, students will be able to: - identify the common errors in information processing; - identify the main behavioral biases and heuristics and take them into account when, say, modeling financial decision processes or advising a client; - understand the limits to arbitrage; - understand the formation and burst process of speculative bubbles; - allocate assets in a portfolio according to behavioral portfolio theory. |
| Bibliography | The main reference for this course are the lecture slides, together with papers and book chapters that will be distributed during the course and before every lecture. |
| Weblink | Link zu ADAM |
| Admission requirements | There are no strict prerequisites in terms of previous courses, however, basic knowledge of finance (portfolio theory, asset pricing, etc) and a keen interest in the applications of behavioral economics and psychology to financial decision making will be useful. |
| Course application | Registration: Please enrol in MOnA. EUCOR-Students and students of other Swiss Universities have to enrol at the students administration office (studseksupport1@unibas.ch) within the official enrolment period. Enrolment = Registration for the exam! A deregistration is possible until November 10, 2021 by email to studiendekanat-wwz@unibas.ch. |
| Language of instruction | English |
| Use of digital media | No specific media used |
| Interval | Weekday | Time | Room |
|---|---|---|---|
| wöchentlich | Friday | 08.30-12.00 | - Online Präsenz - |
| Date | Time | Room |
|---|---|---|
| Friday 29.10.2021 | 08.30-12.00 | - Online Präsenz -, -- |
| Friday 05.11.2021 | 08.30-12.00 | - Online Präsenz -, -- |
| Friday 12.11.2021 | 08.30-12.00 | - Online Präsenz -, -- |
| Friday 19.11.2021 | 08.30-12.00 | - Online Präsenz -, -- |
| Friday 26.11.2021 | 08.30-12.00 | Dies Academicus |
| Friday 03.12.2021 | 08.30-12.00 | - Online Präsenz -, -- |
| Friday 10.12.2021 | 08.30-12.00 | - Online Präsenz -, -- |
| Modules |
Electives Bachelor Business and Economics: Recommendations (Bachelor's degree subject: Business and Economics (Start of studies before 01.08.2021)) Modul: Aufbau Business (Bachelor's Studies: Business and Economics) Modul: Wahlbereich in Wirtschaftswissenschaften (Bachelor's degree subject: Business and Economics) Module: Business II (Bachelor's Studies: Business and Economics (Start of studies before 01.08.2021)) |
| Assessment format | record of achievement |
| Assessment details | take-home project during the term |
| Assessment registration/deregistration | Reg.: course registr.; dereg.: Office of the Dean of Studies |
| Repeat examination | no repeat examination |
| Scale | 1-6 0,1 |
| Repeated registration | as often as necessary |
| Responsible faculty | Faculty of Business and Economics , studiendekanat-wwz@unibas.ch |
| Offered by | Faculty of Business and Economics |