Behavioural Econ and Behavioural Finance

3 credits · Undergraduate

(3 hrs Lecture) This course is an introduction to behavioural economics and behavioural finance. These research areas have developed in response to work undertaken by economists and psychologists examining decision making under different settings. The course begins with a presentation of the standard models of decision making used by economists for choices under certainty and in uncertain settings. It then looks at experimental results based on expected utility theory and alternatives such as prospect theory. Issues that may be discussed include non-standard preferences, cognitive biases, bounded rationality, loss aversion, reference points, endowment effects, and behavioural game theory. Experimental Course - This course is offered on a trial basis to gauge interest in the topic. Students who successfully complete this course receive credit as indicated. Requisite Courses: ECON-2101 [prerequisite(s)].