COURSE NUMBER: MBA236F.1B

COURSE TITLE: Behavioral Finance

UNITS OF CREDIT: 1 Unit

INSTRUCTOR: Greg La Blanc

E-MAIL ADDRESS: lablanc@haas.berkeley.edu

CLASS WEB PAGE LOCATION): http://bspace.berkeley.edu

MEETING DAY(S)/TIME: Tuesdays 4-6PM during Spring B only (March 19 – May 7)

PREREQUISITE(S): MBA 203

CLASS FORMAT: Lectures and discussion.

REQUIRED READINGS: Electronic reader and some handouts.

BASIS FOR FINAL GRADE: class participation, homework, and final

ABSTRACT OF COURSE'S CONTENT AND OBJECTIVES:

The course covers many aspects of finance that do not fit neatly into the efficient markets paradigm. In particular, we will examine how investors behave in environments of limited information, limited attention, and limited rationality. After reviewing the "heuristics and biases" literature, we will discuss trading various trading strategies used by both individual and professional investors and how market composition and structure give rise to momentum, bubbles, and crashes. We will also examine difference of opinion models, noise trader models, and segmented markets with limited arbitrage. We will also cover applications of behavioral finance and agency theory for corporate finance.

BIOGRAPHICAL SKETCH: Gregory LaBlanc has degrees in business, law, and economics from the University of California at Berkeley, George Mason University and the University of Pennsylvania. Before coming to Berkeley, he taught at the University of Virginia, Duke University and the Wharton School, and worked in strategy consulting and competitive intelligence. His research concerns the impact of behavior, information, and human capital on organizational structure and corporate governance. In particular, he is interested in applying information economics to the study of corporate form and regulation.