PhD Courses in Denmark

In the last two decades, economics and finance have witnessed a shift from the rational paradigm towards one that incorporates the possibility that the actions of economic actors are influenced by various behavioral biases documented in psychology. In particular, studies of the calibration of subjective probabilities find that individuals are overconfident: they tend to overestimate the precision of their knowledge and information, as well as their ability to improve outcomes. 

The principal objective of this course is to provide students with a theoretical framework to model such behavioral biases, and to study their impact on financial markets and firms. By relating the theoretical approaches to other non-behavioral theories, the course will also introduce students to classic models in economics and finance. Indeed, the course will start with a brief introduction to models of financial markets, and will successively look at a variety of topics into which some form of biased decision-making is incorporated.