Behavioral Finance and Real Estate

2019-2020

Course Objective

After successfully completing this course you…
- are able to write a research proposal in the area of behavioral
finance and real estate (Academic and Research Skills);
- understand how people are subject to distortions or biases in their
beliefs and have preferences that are not understood in a normatively
acceptable framework (Bridging theory and practice - knowledge);
- understand how behavioral biases affect the decisions of participants
in real estate markets (bridging theory and practice - knowledge);
- understand how the bounded rationality of market participants can
explain the dynamics of real estate markets (bridging theory and
practice- knowledge).

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, and
also included in the program of the Minor Risk Management for Financial
Institutions.

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: