Behavioral Finance and Real Estate

2018-2019

Course Objective

The aims of the course are to understand:
- how people are subject to distortions or biases in their beliefs and
have preferences that are not understood in a normatively acceptable
framework;
- how behavioral biases affect the decisions of participants in real
estate markets;
- how the bounded rationality of market participants can explain the
dynamics of real estate markets.

Course Content

This course provides a behavioral perspective on real estate decision
making and markets. In particular, students learn how behavioral biases
affect the decisions of participants in real estate markets, and how the
bounded rationality of market participants can explain real estate
market dynamics. The course starts with a general introduction into the
psychology of decision making. The second part provides a psychological
perspective on property valuations, negotiation outcomes, and mortgage
choices. The last part of the course considers the efficiency and
dynamics of real estate markets, with a special focus on bubbles and
crashes.

Teaching Methods

Lectures (2 times 3 hours per week)

Method of Assessment

Written exam (80%) and assignment (20%)

Literature

- Bazerman & Moore, Judgment in Managerial Decision Making, Wiley, most
recent edition.
- Selected articles (to be announced).

Target Audience

This course is part of the Minor Real Estate Economics and Finance.

General Information

Course Code E_EBE3_BFRE
Credits 6 EC
Period P2
Course Level 300
Language of Tuition English
Faculty School of Business and Economics
Course Coordinator prof. dr. M.J. van den Assem
Examiner prof. dr. M.J. van den Assem
Teaching Staff prof. dr. M.J. van den Assem
dr. K.L. Wolk
dr. D. van Dolder

Practical Information

You need to register for this course yourself

Last-minute registration is available for this course.

Teaching Methods Lecture
Target audiences

This course is also available as: