AØKA08166U Behavioral Economics and Finance
Traditional economic theory assumes that economic agents are fully rational with unlimited cognitive abilities and willpower. However, individuals frequently and systematically make decisions in contradiction with these standard presumptions. Against the background of this finding the course addresses e.g. the following questions:
What are the shortcomings of traditional theories in economics
How do the new concepts / theories in behavioral finance and behavioral economics address these shortcomings?
How do these new theories relate to the traditional theories and what are their strengths and limitations?
How do the new behavioral presumptions in behavioral finance and economics change the predictions of classical economic theories?
With regard to the organization of the course: In the first week of the course there will be an opening lecture during which also all organizational issues are discussed. In all the following weeks there will be 2-hour lectures on different topics in behavioral finance and economics. Furthermore, there will be two assignments during the course. First, students should write a little paper either alone or together with a maximum of 3 other students which relates to one of the topics discussed in class. This means, students are free to choose an argument, but it should relate to one of the various topics discussed in class. Second, there will be an assignment with exercises which has to be handed in the second part of the course.
Methodological level: Students should learn to critically assess and relate the new concepts and the supporting empirical evidence put forward in the hitherto existing seminal works in behavioral finance and behavioral economics. Furthermore, they should learn how to present these new and often complex concepts in a simple / clear, but not superficial way.
- 7,5 ECTS
- Type of assessment
- Written examination, 2 hours under invigilation2 hours written exam taking place at Peter Bangs Vej 36.
- Exam registration requirements
- Two assignments must be approved for students to be able to sit the exam.
- Without aids
- Marking scale
- 7-point grading scale
- Censorship form
- External censorship
100 % censurship
- Exam period
- Will be updated before the start of the semester
- Same as ordinary. But if only a few students have registered for the re-exam, the exam might change to an oral exams with a synopsis to be handed in. This means that the examination date also will change.