Behavioral Finance and the Role of Psychology in Financial Markets - Lecture 11

Explore behavioral finance and the role of psychology in financial markets through this Yale University lecture. Delve into human failings and foibles, examining factors that keep exploitative impulses in check. Discover key concepts in Behavioral Finance, including Prospect Theory, Regret Theory, and overconfidence. Investigate cognitive biases, heuristics, and social contagion in decision-making processes. Gain insights into personality psychology and its impact on financial behavior. Participate in an in-class experiment demonstrating the prevalence of overconfidence. Conclude with perspectives on moral judgment in the business world, addressing shared values and integrity. Access complete course materials from Yale Online for a comprehensive understanding of behavioral finance and its psychological underpinnings.

- Chapter 1: Human Failings & People's Desire for Praise-Worthiness.
- Chapter 2. Personality Psychology.
- Chapter 3. Prospect Theory and Its Implications for Everyday Decision Making .
- Chapter 4. Regret Theory and Gambling Behavior.
- Chapter 5. Overconfidence, and Related Anomalies, Opportunities for Manipulation.
- Chapter 6. Cognitive Dissonance, Anchoring, Representativeness Heuristic, and Social Contagion.
- Chapter 7. Moral Judgment in the Business World .