This course “Attention, Beliefs and Choices: Behavioural Finance & Macroeconomics” is a hands-on introduction to how real people make money and life decisions, and why those choices matter for markets and economic policy. We will start with simple “rational” benchmarks, then use in-class games and real examples to see where people actually behave differently: for instance, by feeling losses more than gains, by preferring rewards now over later, or by caring about fairness. You will learn how researchers test ideas with experiments and field data, how to read results, and why replication and clear methods matter. Each topic connects directly to everyday finance and economics, entailing decisions on saving, investing, and reacting to news. You will gain a strong foundation of behavioural economics and finance through lecture, readings, presentations and in-class experiments.

Students who have successfully completed this course will have acquired the following skills:

•        Thoroughly understand key behavioural ideas (e.g., loss aversion, mental accounting, present bias, ambiguity aversion) and when they matter in real financial choices

•        Analyse simple experimental/field data to spot patterns and interpret results

•        Apply behavioural insights to everyday finance (saving, budgeting, and basic investing) by comparing “rational” benchmarks with observed behaviour

Moreover, the class will contribute to the students’ ability to:

•        Summarise and professionally present case studies and academic material concisely

•        Understand important concepts, findings, and implications from empirical and experimental studies 

•        Adequately communicate and participate in in-class discussions 

Attendance is required and points can be earned from active participation. Students may not miss more than 20% of classes.

This course consists of a mix of regular lectures, class room demonstrations and discussions, and analyses of presentations. The lectures will be largely based on the instructor’s lecture notes and additional readings. The lectures aim to communicate to students the theoretical framework and main concepts behind various topics. Each student will hold a presentation on one topic to demonstrate a deeper understanding behind the concepts developed during the lectures. The presentations will involve articles and summarizing the main findings and discussing the implications. 

Student presentations will be held in groups of 2-4 students per group (tbc). Slides must be submitted to the lecturer electronically. The presentations will be followed by discussions in class with all students.

•        Mid-term exam (35%): There will be a closed-book exam for part one of the course

•        Final-term exam (35%): There will be a closed-book exam for the entire course

•        Presentation (30%)

Students need at least 50% of the total points to pass this course.

Please contact the lecturer if you have further questions about the assessment.

Students need at least 50% of the total points to pass this course. The remaining cut-off points are 65, 77.5, 90.

Completion of the Course I - Principles of Capital Markets and Course II - Financial Management and Valuation 

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alena.wabitsch@wu.ac.at 

sbwl.finance@wu.ac.at

Readings will be distributed at the start of the course.