1. Perception, Memory and heuristics 2. Familiarity and related heuristics 3. Representativeness and related biases 4. Anchoring 5. Irrationality and adaptation Capability requirements 1. Know the meaning of heuristics and biases 2. Can use this theory to explain financial phenomena Teaching focus 1. Heuristics 2. Anchoring, irrationality and adaptation Unit 6 Overconfidence Theory class hour: 4 Content of courses 1. Miscalibration 2. Other strains of overconfidence 3. Factors impeding correction 4. Looking ahead to financial application Capability requirements 1. Understand what the miscalibration is 2. Better-than-average effect Teaching focus 1. Overconfidence and miscalibration 2. Biases interfering with learnin Unit 7 Emotional foundations Theory class hour: 4 Content of courses 1. The substance of emotion 2. History of emotion theory 3. Evolutionary theory 4. Emotion and reasoning Capability requirements 1. Know the meaning of emotion foundations 2. Can use this theory to explain financial phenomena Teaching focus 1. Emotion theory history and evolution 2. The meaning of brain, emotion, mind Unit 8 Implications of heuristics and biases for financial decision-making Theory class hour: 3 Content of courses 1. Financial behaviors stemming from familiarity 2. Financial behaviors stemming from representativeness 3. Anchoring to available economic cues Capability requirements 1. Know the meaning of home bias 2. Be able to use this theory to analyze relevant cases Teaching focus4 1. Perception, Memory, and heuristics 2. Familiarity and related heuristics 3. Representativeness and related biases 4. Anchoring 5. Irrationality and adaptation Capability requirements 1. Know the meaning of heuristics and biases 2. Can use this theory to explain financial phenomena Teaching focus 1. Heuristics 2. Anchoring, irrationality and adaptation Unit 6 Overconfidence Theory class hour: 4 Content of courses 1. Miscalibration 2. Other strains of overconfidence 3. Factors impeding correction 4. Looking ahead to financial application Capability requirements 1. Understand what the miscalibration is. 2. Better-than-average effect Teaching focus 1. Overconfidence and miscalibration 2. Biases interfering with learning Unit 7 Emotional foundations Theory class hour: 4 Content of courses 1. The substance of emotion 2. History of emotion theory 3. Evolutionary theory 4. Emotion and reasoning Capability requirements 1. Know the meaning of emotion foundations 2. Can use this theory to explain financial phenomena Teaching focus 1. Emotion theory history and evolution 2. The meaning of brain, emotion,mind Unit 8 Implications of heuristics and biases for financial decision-making Theory class hour: 3 Content of courses 1. Financial behaviors stemming from familiarity 2. Financial behaviors stemming from representativeness 3. Anchoring to available economic cues Capability requirements 1. Know the meaning of home bias 2. Be able to use this theory to analyze relevant cases Teaching focus