Behavioral Finance

Time and place: 27.6.-1.7.2022 at Aalto University School of Business (Otaniemi)

Learning goal and objectives:

Behavioral Finance is an approach to the analysis of asset prices, corporate finance, and financial decision-making in general, that relaxes some key assumptions of neoclassical financial economics. Namely, it considers a larger class of objective functions, not always compatible with expected utility. Second, it entertains the possibility that expectations are sometimes biased, and not updated in a Bayesian manner. Third, it considers how various financial market frictions can form strong ‘limits to arbitrage’. This course is designed to introduce doctoral students to these concepts, and to support them in developing behavioral research ideas of their own.

Instruction and examination:

Professor Markku Kaustia (Aalto University School of Business)

Credits: 6 ECTS

Grading: Written exam and a term paper will comprise the final grade. Grading will be on the scale of 0-5.

Prerequisites: GSF Courses or equivalent knowledge

Admittance: 25 students. Finance PhD students have priority, but the course is also open for KATAJA-, FDPE-, and foreign doctoral students given that there is space in the course. Applications are sent directly to and application deadline will be announced later on in the course web page: The acceptances will be announced shortly after the registration deadline.

Instructors: Professor Markku Kaustia (Aalto University School of Business)

Course coordinator and contact information: Reetta Ali-Alha,, 040 353 8061. Application instructions on the course web page: