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Courses / Modules / MANG6239 Behavioural Finance

Behavioural Finance

When you'll study it
Semester 1
CATS points
ECTS points
Level 7
Module lead
Gabriele Lepori
Academic year

Module overview

Mainstream finance assumes that people are rational and is mainly concerned with how they should behave when making financial decisions. In this module, instead, we focus on how individuals make financial decisions in practice, and we use insights from psychology and behavioural economics to explain why they systematically deviate from normative financial theory and make predictable errors. The cognitive, emotional, and social biases that influence people’s decisions bear important implications for individual investors, financial managers, and the dynamics of financial markets.

The module builds on results from a wide spectrum of disciplines outside of finance (such as psychology, medicine, and sociology) and includes practical examples, simple in-class experiments, and discussions of academic studies.