Course Information
SemesterCourse Unit CodeCourse Unit TitleT+P+LCreditNumber of ECTS CreditsLast Updated Date
2İKT642Behavioral Economics and Finance3+0+03619.02.2026
Course Details
Language of Instruction Turkish
Level of Course Unit Doctorate's Degree
Department / Program Economics (PhD)
Type of Program Formal Education
Type of Course Unit Elective
Course Delivery Method Face To Face
Objectives of the Course The aim of this course is to examine the psychological, cognitive, and emotional factors that lead individuals and market actors to systematically deviate from rational assumptions in financial decision-making processes, and to analyze the impact of these factors on financial markets. The course covers fundamental concepts of behavioral finance, biases, and intuitive decision-making mechanisms; and aims to comparatively evaluate phenomena such as investor behavior, asset pricing, market anomalies, and financial bubbles with traditional financial theories. Accordingly, students are expected to gain the competence to critically analyze financial decision-making processes and interpret behavioral finance approaches at both theoretical and practical levels.
Course Content The fundamental concepts and emergence of behavioral finance / Comparison of traditional financial theories with the behavioral finance approach / The assumption of rationality and the concept of bounded rationality / Cognitive biases, intuitions, and decision-making errors / Investor psychology and individual investor behavior / Market anomalies, overreaction, and herd behavior / Risk perception, uncertainty, and investment decision-making processes / Financial bubbles, crises, and behavioral explanations / The impact of behavioral finance on asset pricing and portfolio management / Current empirical studies and application examples
Course Methods and Techniques
Prerequisites and co-requisities None
Course Coordinator Research Assist. M. Talha Şen
Name of Lecturers None
Assistants None
Work Placement(s) No

Recommended or Required Reading
Resources Davranışsal Finansta Güncel Yaklaşımlar ve Uygulamalar, Editör: Serpil SÜMER ADİN. Özgür Yayınları. https://doi.org/10.58830/ozgur.pub1085

Course Category
Social Sciences %40
Field %60

Planned Learning Activities and Teaching Methods
Activities are given in detail in the section of "Assessment Methods and Criteria" and "Workload Calculation"

Assessment Methods and Criteria
In-Term Studies Quantity Percentage
Mid-terms 1 % 40
Final examination 1 % 60
Total
2
% 100

 
ECTS Allocated Based on Student Workload
Activities Quantity Duration Total Work Load
Course Duration 14 3 42
Hours for off-the-c.r.stud 16 8 128
Mid-terms 1 3 3
Final examination 1 3 3
Total Work Load   Number of ECTS Credits 6 176

 
Course Learning Outcomes: Upon the successful completion of this course, students will be able to:
NoLearning Outcomes
1 Ability to define the fundamental concepts and theoretical framework of behavioral finance.
2 Ability to explain the key differences between traditional financial theories and the behavioral finance approach.
3 Ability to evaluate the concepts of rationality assumption and bounded rationality in the context of financial decision-making.
4 The ability to analyze the effects of cognitive biases and intuitive decision-making mechanisms on individual investor behavior.
5 Ability to interpret the role of emotional factors (overconfidence, loss aversion, regret, etc.) on financial decisions.
6 Ability to explain the effects of investor psychology on market pricing and market dynamics.
7 The ability to evaluate market anomalies from a behavioral finance perspective.
8 The ability to analyze behavioral patterns such as herd behavior, overreaction, and underreaction from the perspective of financial markets.
9 Ability to evaluate the concepts of risk perception and uncertainty within the context of investment decision-making processes.
10 Ability to interpret portfolio and investment decisions using behavioral finance approaches.
11 The ability to explain financial bubbles and crises within the framework of behavioral finance.
12 Ability to critically evaluate key empirical studies in the behavioral finance literature.

 
Weekly Detailed Course Contents
WeekTopicsStudy MaterialsMaterials
1 This explains the definition, scope, and differences between behavioral finance and traditional financial theories. The topics covered are learned through readings from books and other sources, and through watching videos.
2 It examines the concepts of rationality assumption and bounded rationality within the context of the financial decision-making process. Topics covered last week and those to be covered this week are read from books and other sources, and watched in videos.
3 It identifies and explains cognitive biases and intuitive decision-making mechanisms with examples. Topics covered last week and those to be covered this week are read from books and other sources, and watched in videos.
4 It analyzes the effects of emotional factors such as overconfidence, loss aversion, and regret on investment decisions. Topics covered last week and those to be covered this week are read from books and other sources, and watched in videos.
5 This section examines the role of investor psychology in financial market behavior and price formation. Topics covered last week and those to be covered this week are read from books and other sources, and watched in videos.
6 Herd behavior, overreaction, and underreaction are behavioral patterns that can be explained in the context of financial markets. Topics covered last week and those to be covered this week are read from books and other sources, and watched in videos.
7 It classifies and interprets market anomalies from a behavioral finance perspective. Topics covered last week and those to be covered this week are read from books and other sources, and watched in videos.
8 Midterm Exam
9 It examines the concepts of risk perception and uncertainty within the context of investment decision-making processes. Topics covered last week and those to be covered this week are read from books and other sources, and watched in videos.
10 This explains the impact of behavioral finance approaches on portfolio management and investment strategies. Topics covered last week and those to be covered this week are read from books and other sources, and watched in videos.
11 It analyzes financial bubbles and crises within the framework of behavioral finance. Topics covered last week and those to be covered this week are read from books and other sources, and watched in videos.
12 It evaluates fundamental empirical studies and current applications in the field of behavioral finance. Topics covered last week and those to be covered this week are read from books and other sources, and watched in videos.
13 It interprets and critically evaluates current financial developments from a behavioral finance perspective. Topics covered last week and those to be covered this week are read from books and other sources, and watched in videos.
14 It interprets and critically evaluates current financial developments from a behavioral finance perspective. Topics covered last week and those to be covered this week are read from books and other sources, and watched in videos.
15 It interprets and critically evaluates current financial developments from a behavioral finance perspective. Topics covered last week and those to be covered this week are read from books and other sources, and watched in videos.
16 Final Exam

 
Contribution of Learning Outcomes to Programme Outcomes
P1
All 4
C1 4
C2 4
C3 4
C4 4
C5 4
C6 4
C7 4
C8 4
C9 4
C10 4
C11 4
C12 4

  Contribution: 1: Very Slight 2:Slight 3:Moderate 4:Significant 5:Very Significant