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

Abstract

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

Merkle, Christoph, Emotion and Finance - An Interdisciplinary Approach to the Impact of Emotions on Financial Decision Making (February 28, 2007). Available at SSRN: https://ssrn.com/abstract=1097131 or http://dx.doi.org/10.2139/ssrn.1097131

Christoph Merkle (Contact Author)

Kuehne Logistics University ( email )

Gro├čer Grasbrook 17
Hamburg, 20457
Germany
+49(0)40-328707-234 (Phone)

HOME PAGE: http://www.the-klu.org

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