Doel vak

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.

Inhoud vak

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.

Onderwijsvorm

Lectures (2 times 3 hours per week)

Toetsvorm

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

Literatuur

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

Doelgroep

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