This course will help you in understanding why stakeholders in a market sometimes over-react, tend to ignore factual information, and rely on rumours and on anecdotal evidence.  The stakeholders, it has to be said, have to take risky decisions and typically work with partial information.  The so-called irrational behaviour, or the rather exaggerated irrational exuberance. In many ways, behavioural finance studies the limits of mathematical and statistical description of economic and financial activities.  The current literature on behavioural finance focuses on the limits of efficient market theory and on what motivates individuals to under- or over-react.