The course is an indictment of market efficiency. At various points it will point at the reasons for its failure. Understanding these reasons does not immediately imply the design of specific money-making strategies, but may help in constructing them.
Financial markets’ possible dysfunctionality suggests perils and opportunities, often at the same time. The course will highlight both.
Students who will take it will
o Develop a blueprint of financial speculation and learn to appreciate its strengths and weaknesses,
o Improve their understanding of financial markets and the relation between human behavior and asset prices,
o Understand and improve their own decision making processes,
o Gain insights into the motives and modes of behavior of other market participants as well as colleagues and employees.
The course presents a heterodox approach to finance. Students thinking of careers in the financial services industry will find it useful.
The class will NOT meet on September 5 because it is the Jewish holiday of Rosh Hashanah. Instead, two hour and a half make up classes will be given on Friday, October 4 and on Friday, November 22.
The course is demanding. A case discussion will take place almost weekly.
Robert G. Kirby Professor of Behavioral Finance
Gur Huberman is the Robert G. Kirby Professor of Behavioral Finance at Columbia Business School where he has taught since 1989. Prior to that, he taught at Tel Aviv University and at the University of Chicago. Between 1993 and 1995 he was Vice President at JP Morgan Investment Management responsible for research on quantitative equity trading. In that capacity, he also helped develop tax aware strategies for...