The objective of this course is to equip participants with the essential knowledge and skills to understand and apply the behavioral finance approach to real-world situations. By the end of the course, participants will be able to:

• Explain the basic assumptions and principles of behavioral finance
• Identify and evaluate evidence for systematic deviations from rationality and self-interest in financial behavior
• Incorporate psychological factors into financial models and analysis
• Evaluate the effects of behavioral interventions on financial behavior and welfare
• Discuss the ethical and policy implications of behavioral finance

By taking this course, participants will benefit from:

• Gaining a comprehensive and up-to-date understanding of behavioral finance
• Developing analytical and critical thinking skills to deal with financial issues
• Enhancing their professional competence and confidence in the financial sector
• Expanding their network and learning from peers and experts in the field

Day One:

Introduction to Behavioral Finance

• What is behavioral finance and why does it matter?
• What are the main goals and challenges of behavioral finance?
• What are the key concepts and principles of behavioral finance?
• What are the main sources of data and information on behavioral finance?

Day Two:

Heuristics and Biases

• What are heuristics and biases and how do they affect financial behavior?
• What are the main types of heuristics and biases (e.g., availability, representativeness, anchoring, framing)?
• How do heuristics and biases affect judgment, decision making, and belief formation?
• How can heuristics and biases be reduced or exploited?

Day Three:

Preferences and Utility

• What are preferences and utility and how do they affect financial behavior?
• What are the main types of preferences (e.g., time preferences, risk preferences, social preferences)?
• How do preferences differ from standard assumptions (e.g., time inconsistency, loss aversion, fairness)?
• How can preferences be measured or manipulated?

Day Four:

Strategic Interaction and Game Theory

• What is strategic interaction and game theory and how do they affect financial behavior?
• What are the main types of games (e.g., simultaneous vs. sequential, one-shot vs. repeated, complete vs. incomplete information)?
• How do players choose their best strategies in different games?
• How do psychological factors (e.g., bounded rationality, limited attention, emotions) affect game outcomes?

Day Five:

Behavioral Interventions and Policy

• What are behavioral interventions and policy and how do they affect financial behavior?
• What are the main types of behavioral interventions (e.g., nudges, defaults, incentives)?
• How do behavioral interventions work (e.g., choice architecture, salience, social norms)?
• What are the ethical and policy issues (e.g., paternalism, welfare, freedom) raised by behavioral interventions?

To enhance learning and practical application of concepts, the training course will use a combination of interactive lectures, case studies, group discussions, practical exercises, and real-world examples. Participants will also get the chance to collaborate on group projects and create action plans adapted to the needs of their respective organizations.