post your comment (500 words) on below

Efficient Market and Behavioral Finance. This video discussion will introduce us to the Behavioral Finance.

This discuss Mind Over Money - PBS Nova Video on Efficient Market:

The video provided a good description of two competing economic models. This video is related to our discussion of tradeoff between risk and return and rational behavior of investors.

The first model is the Rationalist Economics, and the second is the Behavioral Economics. Behavioral economists point out how the emotion interferes with our financial decision making. Crash of 2008 is an example of irrational behavior of people in financial decision making. There are other psychological forces that impact people's financial decisions.

The documentary discusses the relevance of behavioral theory in economics which is a thought-provoking thing to know. I find the various experiments shown in this video to be interesting which gives an insight into various aspects of behavioral model of economics.

Some of my students mentioned that it was particularly interesting in learning about the role that the 2005 housing crash may have played in the 2008 stock market crash.