Visualisation plan de cours 2026 / 2027

EM3E5M56

Behavioural and Experimental Finance

Programme
PGE PGE5 Finance
Semestre
B
Coefficient
2
Volume horaire
Face à face : 18 H
Travail personnel indicatif : 36 H
Discipline
Finance
Nombre de places
45
Cours ouvert aux étudiants visitants
Oui
Langue d'enseignement
Anglais
Responsable
Marie-Hélène BROIHANNE Marie-Hélène
BROIHANNE

Liste des intervenants

Intervenant(s) Email Volume horaire
Marie-Hélène BROIHANNE Marie-Hélène BROIHANNE marie-helene.broihanne@em-strasbourg.eu 6 h CM
Maxime MERLI Maxime MERLI merli@unistra.fr 6 h CM
Nicolas EBER Nicolas EBER nicolas.eber@unistra.fr 6 h CM

Discipline

Finance

Descriptif

Presentation

PART I: Psychological Foundations of Behavioral Finance (Prof. EBER)

Behavioral finance is the study of the psychological influences on financial decisions and financial markets. In this first part of the course, we present the psychological foundations of behavioral finance, with the key concepts of dual process theory (system 1/system 2), heuristics and biases, and overconfidence/overoptimism. During the sessions, each student participates to survey experiments via the Moodle platform. The class consists of (i) experimental surveys students answer, and (ii) post-experiment discussions of the ideas highlighted by the surveys.

PART II: Behavioral Finance (Profs. MERLI/BROIHANNE)

Conventional (or standard) financial theory relies on strong assumptions, for example perfect rationality of investors. An accumulating body of research challenges these fundamental assumptions, suggesting instead that decisions are motivated by a complex array of rational and non-rational psychological factors. This part explores financial decision making in the real world populated by real people.

MAC

Développer une vision stratégique et managériale dans un contexte incertain/Develop a strategic and managerial vision in
13 ECTS

Contribution pédagogique du cours au programme

Develop impactful management using the latest knowledge and tools in the fields of management

Determine a strategic and managerial vision in a complex, uncertain and changing environment
Evaluate sustainable managerial practices using managerial concepts and instruments as well as digital tools
Design solutions adapted to organizational problems by applying relevant methodologies

Develop advanced managerial skills for responsible leadership

Recommend critical decision making to drive change in organizations

Practice impactful management in a multicultural and international environment, driven by a "European mindset"

Communicate in a professional context in (foreign) languages, in writing and/or orally
Formulate solutions to organizational challenges in a multicultural and international context, driven by a "European mindset"

Organisation pédagogique

Face-to-face

- Lectures

Interaction

- Discussions/debates
- Games (educational, role play, simulation)

Objectifs pédagogiques - COGNITIVE DOMAIN

A l'issue du cours, l'étudiant(e) devrait être capable de / d'...
  • present the psychological foundations of behavioral finance
  • apply the key concepts of behavioral finance
  • discriminate behavioral and classical decision-making theories
  • appraise finance paradoxes in the light of behavioral decision-making theories
  • determine the value of any risky prospect
  • assess the insights from the psychological approach in finance
  • criticize the standard theories of financial behavior and financial markets
  • incorporate psychological insights into financial reasoning

Objectifs pédagogiques - AFFECTIVE DOMAIN

A l'issue du cours, l'étudiant(e) devrait être capable de / d'...
  • explain the main concepts of psychology applied to finance

Objectifs pédagogiques — Objectifs de développement durable (ODD)

ODD n°4 - Quality education
ODD portés par la politique RSO de l'EM.

Plan / Sommaire

PART I: Psychological Foundations of Behavioral Finance (N. Eber)

- Bounded Rationality, dual process theory (system 1/system 2)
- Heuristics and Biases
- Overconfidence and Overoptimism

PART II: Behavioral Finance

II1 / Behavioral finance and portfolio management (M. Merli)

- Mental accounting
- Disposition effect
- Overconfidence
- Heuristics and impact

II2 / Behavioral finance and decision-making (MH Broihanne)

- Risk vs. Uncertainty- definitions and example
- Expected Utility Theory (risk aversion under EUT, EUT axioms)
- Prospect Theory (EUT axioms violation, reference point, isolation effect, probability weighting, narrow framing, loss aversion)
- Cumulative Prospect Theory (value function, loss aversion parameter, probability weighting function, CPT and finance paradoxes, the Equity Premium Puzzle and Myopic Loss Aversion)

Prérequis nécessaires

Connaissances en / Notions clés à maîtriser

Principles of finance

Supports pédagogiques

Mandatory tools for the course

- Computer
- Calculator

Moodle platform

- Upload of class documents
- Other : Surveys

Software

- Other : VeconLab

Adossement à la recherche

Ce cours est adossé à la recherche.
  • Research-led (par les contenus)Le cours mobilise des connaissances issues de la recherche académique récente.
  • Research-tutored (par la discussion)Le cours développe l’analyse critique et la discussion de contenus (presse, rapport d’études…), travaux ou résultats de recherche.
  • Research-oriented (par les méthodes)Le cours initie les étudiants aux méthodes, outils ou raisonnements de recherche (collecte/traitement de données, ateliers méthodes, exercices de protocole, etc.).

Bibliographie/références académiques

Gilboa. I [2011], Rational Choice, MIT Press. Gilboa. I [2011], Making Better Decisions: Decision Theory in Practice, Wiley-Blackwell. Kahneman, D. [2011], Thinking, Fast and Slow, Farrar, Straus and Giroux.

Travaux de recherche de l'EM

Boolell-Gunesh, S., Broihanne, M-H, M. Merli. "Sophistication of Individual Investors and Disposition Effect Dynamics", Finance, Vol. 1, n° 33, 2012 Broihanne, M-H., M. Merli and P. Roger "Overconfidence, Risk Perception and the Risk-Taking Behavior of Finance Professionals ", (with), Finance Research Letters, Vol. 2, n° 11, 2014 Eber N. [2020], , La psychologie économique et financière, De Boeck. (In French!) Eber N., Roger P. and Roger T., "Finance and intelligence: An overview of the literature", Journal of Economic Surveys, forthcoming. Magron, C. and M. Merli, Repurchase behavior of individual investors, sophistication and regret", (with C. Magron), Journal of Banking and Finance, Vol. 61, December 2015 Roger, P., T. Roger and A. Schatt, "Behavioral bias in number processing: Evidence from analysts' expectations ", Journal of Economic Behavior and Organization, Vol. 149, 2018, 315-331

Modalités d'évaluation

Liste des modalités d'évaluation

✓ Evaluation finale 1
Semaine d'examens
Ecrite (90 min) / Individuelle / Anglais / Pondération : 100%
Compétence mesurée
ILO1.1-PGE, ILO1.2-PGE, ILO4.1-PGE
✓ Seconde chance
Semaine d'examens
Ecrite (90 min) / Individuelle / Anglais / Pondération : 100%
Compétence mesurée
ILO1.1-PGE, ILO1.2-PGE, ILO4.1-PGE
Aucune modalité d'évaluation n'a pour le moment été attribuée à ce cours.