Behavioral Finance and Real Estate

Vrije Universiteit Amsterdam

Course Description

  • Course Name

    Behavioral Finance and Real Estate

  • Host University

    Vrije Universiteit Amsterdam

  • Location

    Amsterdam, The Netherlands

  • Area of Study

    Finance, Real Estate

  • Language Level

    Taught In English

  • Course Level Recommendations

    Upper

    ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.

    Hours & Credits

  • ECTS Credits

    6
  • Recommended U.S. Semester Credits
    3
  • Recommended U.S. Quarter Units
    4
  • Overview

    COURSE OBJECTIVE
    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.

    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

    TYPE OF ASSESSMENT
    Written exam (80%) and assignment (20%)

Course Disclaimer

Courses and course hours of instruction are subject to change.

Some courses may require additional fees.