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Taming the Animal Spirits of the Stock Markets: A Behavioral Approach to Securities Regulation

71 Pages Posted: 15 Jul 2002  

Donald C. Langevoort

Georgetown University Law Center

Abstract

Recent advances in behavioral finance and economics have offered fascinating, albeit tentative, suggestions that may be useful to securities law policy-makers, especially in the aftermath of Enron and similar scandals. Because of the tentative nature of the findings, however, strong incorporation seems premature. After reviewing some of the literature, I look at three different problem areas - internet fraud, selective disclosure and the measurement of damages in class actions - where this literature might at least provoke creative ideas on how to respond, even if it doesn't generate a clear-cut solution.

Suggested Citation

Langevoort, Donald C., Taming the Animal Spirits of the Stock Markets: A Behavioral Approach to Securities Regulation. Northwestern University Law Review, Forthcoming. Available at SSRN: https://ssrn.com/abstract=305241 or http://dx.doi.org/10.2139/ssrn.305241

Donald Langevoort (Contact Author)

Georgetown University Law Center ( email )

600 New Jersey Avenue, NW
Washington, DC 20001
United States
202-662-9832 (Phone)
202-662-9412 (Fax)

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