Abstract

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Behavioral Finance: An Introduction

Guido Baltussen
New York University - Stern School of Business; New York University - Department of Finance

January 13, 2009

Abstract:
This survey introduces and reviews the field of behavioral finance. It outlines the traditional finance approach, which builds upon rational acting investors, its assumptions, and its shortcomings. Moreover, it surveys the main findings from psychology and sociology that contrast with this traditional finance approach, and it provides examples of situations and studies that reveal the relevance of these findings for financial markets and its participants.

Keywords: behavioral finance, investor psychology, investor behavior, financial markets, market efficiency, individual decision making

JEL Classifications: A12, G00, G10, G11, G12, G14

Working Paper Series

Date posted: October 18, 2009 ; Last revised: November 24, 2009

Suggested Citation

Baltussen, Guido, Behavioral Finance: An Introduction (January 13, 2009). Available at SSRN: http://ssrn.com/abstract=1488110

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Contact Information

Guido Baltussen (Contact Author) New York University - Stern School of Business ( email ) 44 West 4th Street New York, NY 10012 United States
New York University - Department of Finance ( email ) Stern School of Business 44 West 4th Street New York, NY 10012-1126 United States

Abstract

Date posted: October 18, 2009 ; Last revised: November 24, 2009

Suggested Citation

Contact Information

Guido Baltussen (Contact Author)