Lecture in Behavioural Finance

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As not­ed ear­li­er, I’m giv­ing a brand new set of lec­tures on Behav­iour­al Finance at UWS. I am tak­ing a non-stan­dard approach (sur­prise sur­prise) because I am dis­sat­is­fied with the texts in this area–even though it is gen­er­al­ly a non-neo­clas­si­cal realm.

The rea­son is that most Behav­iour­al Finance texts  give too much cre­dence to the neo­clas­si­cal def­i­n­i­tion of rationality–when that def­i­n­i­tion has as much to do with ratio­nal behav­iour as walk­ing on water has to do with mass trans­porta­tion. I also want to include mate­r­i­al from chaos the­o­ry and econo­physics analy­ses of finance, which most texts haven’t incor­po­rat­ed; and I’m con­sid­er­ing micro, macro and finance togeth­er since all three are inte­grat­ed when one aban­dons the neo­clas­si­cal fan­tasies about “ratio­nal” agents who can accu­rate­ly fore­see the future.

The first three lec­tures have been writ­ten and are now avail­able on the Lec­tures page of this blog. For those who’d rather click from here, these are the links:

• Recon­sid­er­ing Con­sumer Behav­iour
• Recon­sid­er­ing Pro­duc­er Behav­iour
• Recon­sid­er­ing Behav­iour in Finance

I had hoped to base posts on each lec­ture, but giv­en the time pres­sure I’m under right now, this will have to do!