Behavioral Economics

About this course

Behavioral economics has dramatically increased the power of economic models to analyze individual and market behavior. It replaces the psychological assumptions that have traditionally held sway in economics with a more flexible, data-driven approach. In this course, we explore what recent research in behavioral economics reveals about how humans systematically deviate from rationality in our economic decision-making. We focus on cases and examples —specifically on how cultural norms, behavioral biases, and decision-making practices in the Nordic and European countries differ from the largely American data set used by the founders of the field—in order to identify promising new directions in understanding and predicting how people actually act and interact in the marketplace.

Pre-requisites

One course in intermediate or advanced microeconomics at university level.

Faculty

Lars-Erik Boström

Faculty

Specialist and educator in behavioral finance, financial consultant and portfolio manager for a Swedish foundation (Åhlén-stiftelsen). He is author of a book about behavioral finance; “Börsens Psykologi – så vinner du över dina hjärnspöken och gör bättre aktieaffärer” (Sterners förlag, 2015). Lars-Erik has long work experience (+25) in asset allocation, portfolio management and financial advisory from Handelsbanken Asset Management (www.handelsbanken.com) in Stockholm. Educator in behavioral finance and portfolio theory at Handelsbanken.  M.Sc of Economics and Business, Economic Analysis, Örebro University, Sweden. Certified Financial Analyst (CEFA), Stockholm School of Economics, Sweden. With DIS since 2020.