Abstract

http://ssrn.com/abstract=2145343
 


 



Behavioral Finance in Joseph De La Vega’s Confusion De Confusiones


M. Teresa Corzo


Universidad Pontificia Comillas

Margarita Prat


affiliation not provided to SSRN

Maria Esther Vaquero Lafuente


affiliation not provided to SSRN

September 12, 2012


Abstract:     
In this paper, we link Joseph de la Vega’s work Confusion de Confusiones, written in 1688, with current behavioral finance and propose that Vega be considered the first precursor of modern behavioral finance. In addition to describing excessive trading, overreaction and underreaction, and the disposition effect, Vega vividly portrays how investors behaved three hundred years ago and includes interesting documentation on investor biases, such as herding, overconfidence and regret aversion.

Keywords: behavioral finance, investor biases, stock market history, overconfidence, herding, regret aversion

JEL Classification: G02, G19, B19

working papers series





Not Available For Download

Date posted: September 13, 2012  

Suggested Citation

Corzo, M. Teresa and Prat, Margarita and Vaquero Lafuente, Maria Esther, Behavioral Finance in Joseph De La Vega’s Confusion De Confusiones (September 12, 2012). Available at SSRN: http://ssrn.com/abstract=2145343 or http://dx.doi.org/10.2139/ssrn.2145343

Contact Information

M. Teresa Corzo (Contact Author)
Universidad Pontificia Comillas ( email )
Spain
915422800 (Phone)
91 5596569 (Fax)
Margarita Prat
affiliation not provided to SSRN ( email )
Maria Esther Vaquero Lafuente
affiliation not provided to SSRN ( email )
Feedback to SSRN


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