{"id":null,"code":"BO00AR00","name":{"valueFi":"Behavioral Economics and Finance","valueEn":"Behavioral Economics and Finance","valueSv":""},"credits":6.0,"minCredits":6,"maxCredits":6,"tags":[],"createdAt":1790533342557,"contentList":[{"title":{"valueFi":"Osaamistavoitteet","valueEn":"Learning outcomes","valueSv":""},"content":{"valueFi":"","valueEn":"The lecture course consists of two separate modes, the first (Module 1) focusing on behavioral finance topics and the second (Module 2) on behavioral economics topics and on experimental economics. Theoretical focus of the Module 1 is cognitive psychology: biases in decision making, heuristics and rules of thumbs, and narratives. The key theoretical construction is the Prospect Theory. Module 1 contains several applications in the areas of finance including behavioral aspects of investor behavior and corporate finance topics.  \r\n\r\nThe aim of Module 2 is to give to students the necessary theoretical background which can make them able to interpret modern economic systems and the knowledge methodology of behavioral economics. By a re-examination of the theoretical assumptions in term of preferences rationality and maximization behavior of the economic agent embedded in the neoclassical economics, with the help of new instrument deriving from cognitive physiology and decision theory students will be given instruments and theoretical elements necessary to interpret the behavior of the economic agent in the new complex economic system with application to public policy, communication, and proper economic analysis. At the end of the Module 2 students should be able to design an experiment.","valueSv":""}},{"title":{"valueFi":"Sisältö","valueEn":"Content","valueSv":""},"content":{"valueFi":"","valueEn":"Module 1: Behavioural Finance\r\n\r\n1.\tIntroduction: Why Behavioral Approach?\r\n2.\tThinking, Fast and Slow\r\ni.\tBiases\r\ni.\tNormality, Tendency to find False Causality and Intentions\r\nii.\tNeglect of Ambiguity and Ambiguity Aversion\r\niii.\tConfirmation Bias\r\niv.\tThe Law of Small Numbers\r\nv.\tFraming and Anchoring\r\nvi.\tAvailability Bias\r\nvii.\tAffect Heuristics\r\nviii.\tMental Accounting\r\n3.\tHeuristics and Representativeness\r\ni.\tViolation of Bayes Law\r\nii.\tPrediction vs. Similarity\r\niii.\tThe Neglected Regression Towards Mean\r\niv.\tBeyond Rationality: Investigating Social, Emotional, and Personality Influences\r\n4.\tProspect Theory\r\ni.\tViolations of the Axioms of Expected Utility\r\nii.\tOriginal Prospect Theory\r\niii.\tCumulative Prospect Theory\r\n5.\tNarratives\r\ni.\tNarratives in Human Behavior\r\nii.\tNarratives and Finance\r\n6.\tBehavioral Finance\r\ni.\tMarket Sentiment\r\nii.\tHerding\r\niii.\tVolatility, Cross-Sectional Volatility and Trading Volume\r\niv.\tBubbles and Crashes\r\nv.\tGlamour Stocks\r\nvi.\tBehavioral Corporate Finance\r\ni.\tMarket Timing and Catering\r\nii.\tReal Investments\r\niii.\tMergers and Acquisitions\r\niv.\tEquity Issues and Share Repurchases\r\nv.\tManagerial Biases\r\nvi.\tNegotiating Insights: Bargaining Games and Corporate Finance\r\n\r\n\r\n\r\n\r\nModule 2: Behavioural Economics\r\n1.\tIntroduction to Behavioral and Experimental Economics \r\ni.\tHomo Economicus\r\nii.\tBehavioural Economics \r\niii.\tExperimental Economics\r\niv.\tDeception and Monetary Economics\r\n\r\n2.\tNegotiating Insights: Bargaining Games\r\ni.\tIntroductory insights\r\nii.\tDictator games\r\niii.\tUltimatum games\r\niv.\tPsychological factors\r\nv.\tFinancial factors\r\n\r\n3.\tBuilding Trust: Gift Exchange Games\r\ni.\tTrust games\r\nii.\tDisentangling motives in the trust game\r\niii.\tBehavioural determinants of trust\r\niv.\tGift Exchange games\r\n\r\n4.\tFostering Cooperation: Understanding Public Good Games Behaviorally\r\ni.\tDo people cooperate?\r\nii.\tWhy do people cooperate?\r\niii.\tPublic Good games\r\niv.\tSocial identity and discrimination in public good experiments\r\n\r\n\r\n5.\tCross-Cultural Experiments\r\ni.\tDefinitions\r\nii.\tFairness and bargaining behavior\r\niii.\tTrust games in this context\r\niv.\tCooperative behavior\r\nv.\tNegative reciprocity\r\n\r\n\r\n\r\n6.\tBeyond Rationality: Investigating Social, Emotions and economic decision-making\r\ni.\tDefinitions\r\nii.\tEmotions\r\niii.\tMood\r\niv.\tPersonality Traits\r\n\r\n\r\n7.\tGender Gap: Insights from Behavioural Economic Experiments\r\ni.\tInsights\r\nii.\tAttitudes to risk\r\niii.\tAttitudes to competition\r\niv.\tSocial preferences\r\nv.\tWhy are men and women different?\r\n\r\n\r\n\r\n\r\n8.\tAnalyzing Behavioral Economics Papers: Unveiling Insights and Trends I\r\ni.\tStructure\r\nii.\tSubject Pool\r\niii.\tInstructions\r\niv.\tLocation\r\nv.\tRecruitment and software\r\nvi.\tDesign\r\n\r\n\r\n9.\tAnalyzing Behavioral Economics Papers: Unveiling Insights and Trends II\r\ni.\tPractise\r\nii.\tAnalysis","valueSv":""}},{"title":{"valueFi":"Suoritustavat","valueEn":"Study Methods","valueSv":""},"content":{"valueFi":"","valueEn":"During class lectures, students actively engage in collaborative learning through group assignments, discussions, and project work. Weekly, the course materials and assignments are promptly posted to facilitate continuous progress. Weekly small assignments and the final project are accomplished collectively within student groups, fostering teamwork and shared knowledge. Moreover, meaningful interactions with instructors take place within the classroom, enhancing the overall learning experience. During each week students will write a short paper (1-3 pages) focusing on topics or research ideas given by the instructor. The final project will be a 10-20 pages long study of some of the topics of the lecture course and a presentation in the class. It may be a literature review, or a small-scale empirical study based on the student’s choice.","valueSv":""}},{"title":{"valueFi":"Toteutustavat","valueEn":"Teaching Methods","valueSv":""},"content":{"valueFi":"","valueEn":"During class lectures, students actively engage in collaborative learning through group assignments, discussions, and project work. Weekly, the course materials and assignments are promptly posted to facilitate continuous progress. Weekly small assignments and the final project are accomplished collectively within student groups, fostering teamwork and shared knowledge. Moreover, meaningful interactions with instructors take place within the classroom, enhancing the overall learning experience. During each week students will write a short paper (1-3 pages) focusing on topics or research ideas given by the instructor. The final project will be a 10-20 pages long study of some of the topics of the lecture course and a presentation in the class. It may be a literature review, or a small-scale empirical study based on the student’s choice.","valueSv":""}},{"title":{"valueFi":"Oppimateriaalit","valueEn":"Learning material","valueSv":""},"content":{"valueFi":"","valueEn":"<ul>\r\n\t<li>Drouvelis, M. (2021). Social preferences: An introduction to behavioral economics and experimental research. Agenda Publishing.</li>\r\n\t<li>Kahneman, D. 2013. Thinking, Fast and Slow. Farrar, Straus and Giroux. The literature given by the instructors.</li>\r\n\t<li>Cartwright, E. (2018). Behavioural economics. Routledge, UK. (ISBN: 9781138097124).</li>\r\n</ul>","valueSv":""}},{"title":{"valueFi":"Lisätiedot","valueEn":"Further information","valueSv":""},"content":{"valueFi":"","valueEn":"","valueSv":""}},{"title":{"valueFi":"Kurssikirjallisuus","valueEn":"Literature","valueSv":""},"content":{"valueFi":"","valueEn":"","valueSv":""}},{"title":{"valueFi":"Esitietovaatimukset","valueEn":"Qualifications","valueSv":""},"content":{"valueFi":"","valueEn":"","valueSv":""}},{"title":{"valueFi":"Arviointiasteikko","valueEn":"Assessment scale","valueSv":""},"content":{"valueFi":"","valueEn":"","valueSv":""}},{"title":{"valueFi":"Arviointikriteerit","valueEn":"Assessment criteria","valueSv":""},"content":{"valueFi":"","valueEn":"Assessment methods and criteria:\r\nAssignments 40%, Final project 60%\r\nGrading:\r\nThe course utilizes a numerical grading scale 1-5. In the numerical scale zero stands for a fail.\r\nGrading (total points --> course grade):\r\n0-49 --> 0 (fail); 50-59 --> 1; 60-69 --> 2; 70-79 --> 3; 80-89 --> 4; 90+ --> 5","valueSv":""}},{"title":{"valueFi":"Arviointikriteerit 2","valueEn":"Evaluation criteria 2","valueSv":""},"content":{"valueFi":"","valueEn":"","valueSv":""}},{"title":{"valueFi":"Arviointikriteerit 3","valueEn":"Evaluation criteria 3","valueSv":""},"content":{"valueFi":"","valueEn":"","valueSv":""}},{"title":{"valueFi":"Arviointikriteerit 4","valueEn":"Evaluation criteria 4","valueSv":""},"content":{"valueFi":"","valueEn":"","valueSv":""}},{"title":{"valueFi":"Pääasiallinen opetuskieli","valueEn":"Primary Teaching Language","valueSv":""},"content":{"valueFi":"englanti","valueEn":"English","valueSv":"engelska"}},{"title":{"valueFi":"Taso","valueEn":"Level","valueSv":""},"content":{"valueFi":"Syventävät opinnot","valueEn":"Advanced Studies","valueSv":"Syventävät opinnot"}},{"title":{"valueFi":"Oppiaine","valueEn":"Subject","valueSv":""},"content":{"valueFi":"Rahoitus","valueEn":"Finance","valueSv":""}},{"title":{"valueFi":"Vastuuhenkilöt","valueEn":"Person in charge","valueSv":""},"content":{"valueFi":"Evangelos Mourelatos","valueEn":"Evangelos Mourelatos","valueSv":"Evangelos Mourelatos"}},{"title":{"valueFi":"Luokittelu","valueEn":"Classification","valueSv":""},"content":{"valueFi":"","valueEn":"","valueSv":""}},{"title":{"valueFi":"Linkit","valueEn":"Links","valueSv":""},"content":{"valueFi":"","valueEn":"","valueSv":""}}]}