Behavioral Finance (F)
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 and finance?
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?
MSc programme in Economics – elective course
The course is part of the MSc programme in Economics, Financial line, symbolized by ‘F’.
After completing the course, the student should be able to:
be introduced to the field of behavioral finance.
understand how behavioral finance and economics attempts to understand the most important systematic behavioral departures from standard economic theories.
provide an in-depth overview of the most important seminal works in behavioral finance
be aware of the impact and relevance of the new concepts and theories presented in these seminal works.
critically assess and relate the new concepts and the supporting empirical evidence put forward in the hitherto existing seminal works in behavioral finance.
present these new and often complex concepts in a simple / clear, but not superficial way.
apply the empirical and theoretical knowledge and the skills obtained in this course to understand real-world behavioral phenomena that lie beyond the scope of this course.
use their newly obtained knowledge and skills to solve decision problems that lie outside the scope 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 lectures on different topics in behavioral finance and economics. There will be an assignment with exercises which has to be handed in the second part of the course.
A list of required readings will be given to the students in the beginning of the course
A sound knowledge of microeconomics and game theory is required.
2 hours lectures 1 to 2 times a week from week 36 to 50 (except week 42).
The overall schema for the Master can be seen at KUnet:
MSc in Economics => "Courses and teaching" => "Planning and overview" => "Your timetable"
Timetable and venue:
To see the time and location of lectures please press the link under "Se skema" (See schedule) at the right side of this page. E means Autumn.
You can find the similar information partly in English at
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-E19; [Name of course]”
-Select Report Type: “List – Weekdays”
-Select Period: “Efterår/Autumn – Weeks 31-5”
Press: “ View Timetable”
For foreign students not enrolled: Admission requirements, registration etc: Study Economics.
For gæste- og enkelfagsstuderende: Tilmelding og information via Uddannelse i Økonomi.
- 7,5 ECTS
- Type of assessment
Written examination, 2 hours under invigilationThe exam assignment is in English and must be answered in English.
- Without aids
- Marking scale
- 7-point grading scale
- Censorship form
- No external censorship
for the written exam. The exam may be chosen for external censorship by random check.
Criteria for exam assessment
Students are assessed on the extent to which they master the learning outcome for the course.
To receive the top grade, the student must with no or only a few minor weaknesses be able to demonstrate an excellent performance displaying a high level of command of all aspects of the relevant material and can make use of the knowledge, skills and competencies listed in the learning outcomes.
Single subject courses (day)
- Course number
- 7,5 ECTS
- Programme level
- Full Degree Master
Information about admission and tuition fee: Master and Exchange Programme, credit students and guest students (Open University)
Go to "Remarks".
Exam and re-sits: Go to "Exam".
- Department of Economics, Study Council
- Department of Economics
- Faculty of Social Sciences
- Alexander Christopher Sebald (16-646f687b647167687531766865646f674368667271316e7831676e)
see 'Course Coordinators'
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