ECN 420E - Behavioural Economics

Course Objectives

1-) To understand financial market inefficiencies explained by psychological theories.
2-) To explore the differences between standard financial theory and behavioral explanation of financial theory.
3-) To learn to design policies under the assumptions of behavioral economics

Course Description

Market efficiency and behavioural finance, prospect theory, knightian uncertainty, limits to arbitrage, herd behaviour, sentiment, bubbles, anomalies