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Instructors: Prof. Dr. Thorsten Teichert
Event type:
Seminar
Displayed in timetable as:
Con. and Mgt. Dec.
Hours per week:
3
Credits:
6,0
Language of instruction:
English
Min. | Max. participants:
10 | 30
Comments/contents:
Further information is provided on our website.
The seminar gives an introduction into various aspects of Behavioral Finance. Investors are expected to act irrationally and without complete information. Investors as actors and their behavior are in the focus of analysis. We investigate how investment decisions are formed and how investors err. We look at strategies and instruments to alleviate those errors.
Didactic concept:
In the following, you will find literature for every single topic. Students should derive the conceptual framework and apply them to a specific application case. Students are expected to draw from consumer behavior literature and, in a second step, relate the findings to behavioral investing. Exceptions are topics that are exclusively relevant for behavioral investing.
Block 1: Foundations of Behavior Finance
- Traditional versus Behavioral Finance
- Behavioral Biases
- Behavioral Investing of Professionals
Block 2: Determinants of investor behavior
- Risk Assessments
- Financial Expertise
- Psychology and Emotions
- Personality
- Socio-Economic Wealth Considerations
- Behavioral Decision Making
Block 3: Biases
- Overconfidence and Self-Attribution Bias
- Disposition and Endowment effect
- Herding
- Loss aversion and regret aversion
- Mental accounting
- Availability, Recency, Representativeness
- Anchoring, Conformation and Hindsight Bias
- Conservatism and Home bias
Block 4: Implications
- Portfolio analysis and formation
- Stock market volatility
- Asset pricing
- Nudging & other instruments to limit the effects of biases
- Designing Investment Products
- Automated Finance
Literature:
Introductory literature on each topic is provided in the syllabus.
Additional examination information:
Please note: The mandatory Kick-Off and the assignment of the topics will be held on Friday, 18.10.2019, from 16.15 –19.45 in room S07 (VMP 9). This is a mandatory date. Topics cannot be assigned later!
To pass the course, you have to successfully pass the following examinations:
- Written Report (due two weeks before assigned presentation date, electronic and print version; scope 12-15 pages per person). Detailed outlines may be sent to Prof. Teichert in advance to get feedback before handing in.
- Presentation of own topic (15 to 20 minutes presentation, 10 minutes discussion)
- Short presentation (5 min) on topic of fellow students with critical feedback. Assignment is conducted by the Chair. The documents are sent out two weeks in advance. Short presentation is the formal requirement to be eligible for examination.
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