Emotion and Finance - An Interdisciplinary Approach to the Impact of Emotions on Financial Decision Making
73 Pages Posted: 24 Feb 2008
Date Written: February 28, 2007
The paper explores the influences of emotions on human decision making, especially in context of finance. It reviews the psychological, neuroscientific and neuroeconomic evidence about the topic and shows which applications these insights have found in behavioral finance and the new subject of neurofinance. Several descriptive and formal approaches are introduced and their usefulness is discussed.
Keywords: emotion, rationality, decision making, neuroeconomics, neurofinance, behavioral finance
JEL Classification: A12, G10
Suggested Citation: Suggested Citation