Unit Neurofinance and behavioral finance

Course
Economics and management of sustainable development
Study-unit Code
A003032
Location
TERNI
Curriculum
In all curricula
Teacher
Duccio Martelli
Teachers
  • Duccio Martelli
Hours
  • 42 ore - Duccio Martelli
CFU
6
Course Regulation
Coorte 2024
Offered
2025/26
Learning activities
Caratterizzante
Area
Aziendale
Academic discipline
SECS-P/11
Type of study-unit
Opzionale (Optional)
Type of learning activities
Attività formativa monodisciplinare
Language of instruction
Italian
Contents
- Limits of the traditional approach to finance
- Full vs. bounded rationality
- Biases and heuristics
- Framing effect
- Herd behavior and speculative bubbles
- Introduction to neurofinance: overview of the structure and anatomy of the brain
- The role of emotions
- The reward network
- Risk and loss aversion
- Choices under risk or uncertainty
Reference texts
- Peterson R. L., “Inside the Investor's Brain: The Power of Mind Over Money”, Wiley, 2007
- Pompian M.M., “Behavioral Finance and Your Portfolio: A Navigation Guide for Building Wealth”, Wiley, 2021
Educational objectives
Behavioral finance and neurofinance are innovative fields of research, investigating how emotions, behaviors and biological and neuronal determinants affect the economic choices of individuals.
The course aims at helping students in understanding limitations and challenges of the traditional finance approach, from both a behavioral and a neuroscientific perspective, illustrating how behavioral and biological determinants induce individuals to make decisions that are not fully rational.
Thanks to laboratory experiments and field studies, it is possible to identify the drivers that influence investor decision making.
Neurofinance and Behavioral Finance thus represents an innovative course, providing students advanced insights about individuals make decisions. This knowledge represents a value added for graduate students, which is required in the today's job market.


Prerequisites
-
Teaching methods
Lectures and exercises
Other information
-
Learning verification modality
Written exam and group projects
Extended program
https://www.wiley.com/en-us/Behavioral+Finance+and+Your+Portfolio%3A+A+Navigation+Guide+for+Building+Wealth-p-9781119801993
Obiettivi Agenda 2030 per lo sviluppo sostenibile
SDG 3, 4 and 8
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