[VFN] Reminder: Talk on Dec 5th with P. Bossaerts on "NEURO-FINANCE"

[Gutmann Center-D.Grimm]

GUTMANN CENTER FOR PORTFOLIO MANAGEMENT

at the University of Vienna - http//:www.gutmann-center.at

invites to the following

PUBLIC LECTURE:
(Apologies for any cross-listings!):

Date: DECEMBER 5th, 2006, (Tuesday) -  4.00 pm
Location: Bank Gutmann AG, Schwarzenbergplatz 16, 1010 Wien

Speaker: Prof. Dr. PETER BOSSAERTS, California Institute of Technology 
(Caltech)
http://www.hss.caltech.edu/~pbs/


Title:         NEURO-FINANCE

Abstract:
Finance has always treated humans as black boxes, whereby behavioral 
rules are either imposed by decision theory (neoclassical finance) or 
derived from observation of actual or hypothetical choice (behavioral 
finance). In contrast, neuro-finance attempts to understand behavior by 
examining the physiological processes in the human brain when exposed to 
financial risk. The talk will illustrate this with the recent discovery 
that the brain analyzes monetary gambles by separately encoding their 
expected payoff and the payoff variance (even when subjects have never 
heard of these concepts). As such the brain uses the same inputs as 
Markowitz' portfolio theory. This is in sharp contrast with economics 
(which includes Prospect Theory), which represents desirability of 
gambles through scores on a single-dimensional utility scale.

About Peter Bossaerts:
Peter Bossaerts is William D. Hacker Professor of Economics and 
Management and Professor of Finance at the California Institute of 
Technology (Caltech). At present, he is at the Université de Lausanne as 
Swiss Finance Institute Visiting Professor. Prof. Bossaerts holds a PhD 
in Management (Finance) from UCLA. His current research area is 
experimental finance, in particular, neuro-finance. He investigates 
cognitive biases and their impact on asset prices, through observation 
of individual behavior, observation of price formation in large-scale 
experimental financial markets, and through analysis of brain activation 
while individuals face financial risk.

Please REGISTER:
Mail: gutmann.bwl at univie.ac.at
Phone: +43-1-4277-38186 - Fax: +43-1-4277-38074

Contact and further information:
Gutmann Center for Portfolio Management
University of Vienna - Mag. Dorothea GRIMM
Bruenner Str. 72 - 1210 Wien (Austria)
phone: +43-1-4277-38186 - fax: +43-1-4277-38074
mail: gutmann.bwl at univie.ac.at - web: www.gutmann-center.at