3506647: Behavioral Finance

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Semester:SS 13
Scheduled in semester:4
Semester Hours per Week / Contact Hours:30.0 L / 22.5 h
Self-directed study time:37.5 h

Module coordination/Lecturers


Bachelor's degree programme in Business Administration (01.09.2012)


Behavioral Finance and Game Theory


    • Are aware of the most common human biases in financial decision making.
    • Understand how rational solutions can be found with classical decision models and are aware of the differences between these model solutions and the solutions humans normally take.
    • They are able to use concepts and methods to solve games and can predict the behavior of involved players.
    • Analyze games and decision situations.
    • Combine the knowledge from various areas to create a risk profiler for a better understanding of clients` needs.
    • Evaluate of Investments with PT.
    • Explain and interpret the assumptions of these methods.
    • Use methods and models on unknown decision situations. Calculate optimal solutions and equilibria.
    • Evaluate behavioral decision methods in mini cases and find appropriate models for solving typical problems.
    • Understand and critically discuss the arguments of fellow students.
    • Work together in small groups to solve mini cases and small examples discussed in class.
    • Evaluate the solutions of fellow students, explain carefully why they might be seen as right or wrong.
    • Understand the flaws and problems of fellow students, reaction without offense.
    • React to and defend their solution without being offended.
    • Listen carefully, read and repeat, practice until they understand the logic and mathematics the models are based upon.
    • Work together and motivate other students who tend to give up as a reaction to the difficulty of mathematical problems.
    • Take responsibility and organize/explain solutions to others who have problems and tend to give up.

Lectures Method

Lecture, mini cases and experiments (online & in-class)


Thorsten Hens & KremenaBachmann: Behavioural finance for private banking, 2008, Wiley Finance