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Introduction to Behavioural Finance

Gain a better understanding of behavioural finance and its role in economics with this free online course.

Accounting
Free Course
This free online Behavioural Finance course will introduce you to how neoclassical economics defines rational and irrational human behaviour. In this course you will learn about how behavioural finance questions long-held beliefs in economics such as how individual demand curves can be applied to the market in general. You will also delve into the proof by contradiction, the Axioms of Revealed Preference, and a whole lot more.

Description

Modules

Outcome

Certification

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Description

This course begins by discussing the characteristics of human behaviour as defined in the areas of microeconomics, macroeconomics, and finance. You will study the Strong Axioms of Revealed Preference (SARP) which states that in a world where there are only two goods to choose from, the strong and weak actions are shown to be equivalent. You will also look into the Weak Axiom of Revealed Preference (WARP) which states that if one product or service is purchased instead of another, then the consumers will always make the same choice.

You will then look into why individual demand curves cannot be converted into a market demand curve. This course will discuss how proof by contradiction shows that the Law of Demand does not apply to the market demand curve. You will learn why normal human behaviour must violate the Revealed Preference model which is an economic theory regarding an individual's consumption patterns and asserts that the best way to measure consumer preferences is to observe their purchasing behaviour.

Behavioural finance is a new and exciting area in economics that combines the psychology of human behaviour with the traditional theories of finance and economics. The result is a new explanation of how modern economies work, such as how markets are affected by the behaviour of investors. Upon the completion of this course, you will have a better understanding of the role of behaviour in economics and become familiar with the rational behaviour in economic theory and the Axioms of Revealed Preference. Check out this course and developing a new understanding of modern economics and finance.

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Learning Outcomes

At the end of this course learners will be able to: - Describe the role of behaviour in economics - Describe what is rational behavior in economic theory - List the Axioms of Revealed Preference

Certification

All Alison courses are free to enrol, study and complete. To successfully complete this Certificate course and become an Alison Graduate, you need to achieve 80% or higher in each course assessment. Once you have completed this Certificate course, you have the option to acquire an official Certificate, which is a great way to share your achievement with the world. Your Alison Certificate is:

Ideal for sharing with potential employers - include it in your CV, professional social media profiles and job applications
An indication of your commitment to continuously learn, upskill and achieve high results
An incentive for you to continue empowering yourself through lifelong learning

Alison offers 3 types of Certificates for completed Certificate courses:

Digital Certificate - a downloadable Certificate in PDF format, immediately available to you when you complete your purchase
Certificate - a physical version of your officially branded and security-marked Certificate, posted to you with FREE shipping
Framed Certificate - a physical version of your officially branded and security-marked Certificate in a stylish frame, posted to you with FREE shipping

All Certificates are available to purchase through the Alison Shop. For more information on purchasing Alison Certificates, please visit our FAQs. If you decide not to purchase your Alison Certificate, you can still demonstrate your achievement by sharing your Learner Record or Learner Achievement Verification, both of which are accessible from your Dashboard. For more details on our Certificate pricing, please visit our Pricing Page.

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