Credits: 15
Module Convenor: Dr Asen Ivanov
There is substantial evidence that people violate the "rationality" assumptions of mainstream economics. Behavioural economics studies such violations and proposes theories to explain them. Behavioural finance is a subfield of behavioural economics studying irrationalities in financial decisions as well as puzzles on financial markets.
The module provides an overview of behavioural economics and behavioural finance. Some key topics are bounded rationality, the winner’s curse, overconfidence, saving for retirement, insurance, predictability of returns, and bubbles. Frequent use will be made of in-class experiments.
There is an overlap of the content in this module and both Behavioural Economics (ECOM101) and Behavioural Finance (ECOM038), students are therefore unable to this module and either of the more in-depth versions.
Assessment: 80.0% Examination, 20.0% Coursework