This unit identifies the typical behavioural biases occurring in consumer finance, which can give rise to exploitation and unfavourable personal financial circumstances.

What you will learn

By the end of this unit, you will be able to:

  1. Acknowledge the most common biases occurring in consumer finance that might negatively impact financial well-being.
  2. Recognize that consumers make predictable mistakes when choosing and using financial products and that financial firms are likely to respond to these mistakes.
  3. Evaluate how behavioural biases can lead firms to compete in ways that are not in the interests of consumers.
  4. Identify how behavioural economics can, and should, be used in the regulation of financial conduct.
  5. Distinguish between types of non-standard preferences, non-standard beliefs and non-standard decision making as the most common sources of error by consumers when it comes to the usage of financial products.
  6. Appraise how many products are inherently complex for most people, many involve trade-offs between the present and the future, how decisions may require assessing risk and uncertainty, identify how certain decisions can be emotional and that certain products permit little learning from past mistakes.

Course Info

Length: One 1 hour video

Institution: University of Glasgow

Level: medium

Effort: 5 hours

Schedule: Self-paced