Behavioral Finance and Real Estate
Vrije Universiteit Amsterdam
Amsterdam, The Netherlands
Area of Study
Finance, Real Estate
Taught In English
Course Level Recommendations
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.
Recommended U.S. Semester Credits3
Recommended U.S. Quarter Units4
Hours & Credits
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.
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.
TYPE OF ASSESSMENT
Written exam (80%) and assignment (20%)
Courses and course hours of instruction are subject to change.
Some courses may require additional fees.