This course aims to teach the psychological and behavioral dimensions of financial decision-making processes. It provides students with knowledge about cognitive biases, emotions, and social factors that influence the decisions of individuals and investors. The assumptions of traditional finance theories are compared with behavioral finance approaches. Furthermore, irrational behaviors in financial markets and their effects on market outcomes are evaluated.

The course begins with the emergence and fundamental concepts of behavioral finance. Differences between traditional finance theories and behavioral finance approaches are examined. Cognitive biases, heuristic decision-making processes, and the effects of emotions on investment decisions are evaluated. Behavioral tendencies such as overconfidence, loss aversion, herd behavior, and framing effects are analyzed. In addition, financial market anomalies and the implications of behavioral finance for public policies and investment strategies are discussed.