Behavioral Finance: An Introduction
Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)
January 13, 2009
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.
Number of Pages in PDF File: 43
Keywords: behavioral finance, investor psychology, investor behavior, financial markets, market efficiency, individual decision making
JEL Classification: A12, G00, G10, G11, G12, G14
Date posted: October 18, 2009 ; Last revised: December 16, 2011