We make thousands of decisions every day. Do I cross the road now, or wait for the oncoming truck to pass? Should I eat fries or a salad for lunch? How much should I tip the cab driver? We usually make these decisions with almost no thought, using what psychologists call “heuristics” – rules of thumb that enable us to navigate our lives. Without these mental shortcuts, we would be paralyzed by the multitude of daily choices. But in certain circumstances, these shortcuts lead to predictable errors – predictable, that is, if we know what to watch out for. Did you know, for example, that we are naturally biased towards selling investments that are doing well for us, but holding on to those that are doing poorly? Or that we often select sub-optimal insurance payment plans, and routinely purchase insurance that we don’t even need? And why do so many of us fail to enroll in our employer’s corporate retirement plans, even when the employer offers to match our contributions?
About this Course
Skills you will gain
- 5 stars61.59%
- 4 stars25.78%
- 3 stars8.47%
- 2 stars2.42%
- 1 star1.71%
TOP REVIEWS FROM BEHAVIORAL FINANCE
I am so grateful to the professors of Duke University who prepared this course. I learned a lot and now, I'll be more careful and observant of myself on how I spend my money.
Need someone to respond if we have doubts
Include reading materials too for further reference
Too much of overlap between video and text content, Need to differentiate both
Very good course. I learnt about many biases which I often make in making financial decisions and now I hope I will correct those. Cheers to the team coursera for this course
Overall, the content was excellent. More practical examples of practicing the principles would have been helpful for completing the exam as well as absorbing the content into long term memory.
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