Abstract

Unbeknownst to us, we(humans) possess biases and idiosyncratic interpretations that shape our judgments and ideals. Ergo, humans take for granted that other social participants will appreciate their judgments. When this preconceived notion is betrayed by reality, people’s certitude of objectivity forces them to perceive others as biased or unfair. Such cognitive biases can prove costly in hands of individuals at a micro-level and decision-makers at a macro-level. Recent global financial crises indicate that even regulators and policy-makers aren’t immune from self-serving biases that downplay own dispositional biases. If and when left unchecked, cognitive biases threaten a huge waste of efforts and economic resources. At this juncture of 21st century, overwhelming empirical and theoretical literature underscore the deviation of financial markets and human decision making process from the basic assumptions underlying traditional economics finance paradigm that has pervaded since the mid-1900s. Ranging from applying bounded rationality to economic models to Kahneman’s application of prospect theory to economics and financial markets, designers of business school curricula have now access to a smörgåsbord of literature addressing the inescapable issue of cognitive biases. Specifically, for economics and finance professors, this distinction of cognitive (in)coherences and their recognition should be inculcated subliminally in introductory 1st year level courses, and later on progressively through purposive behavioral-neuro economics/finance courses. In this paper, we argue that such bias-proofing redesign promises aiding students in superior decision making, assessing risk, and minimizing biases. After surveying the curricular praxis in Malaysian business schools, we draw attention to the attractive adaptive market hypothesis (AMH), which promises an exciting infusion of the legacy of EMH model, bounded rationality, evolutionary biology, neuroscience and psychology. This article is a plea for reform in light of nascent advances in behavioral/neuro economics and finance.