The Psychology of Financial Choices: From Classical and Behavioral Finance to Neurofinance

17 Pages Posted: 2 Dec 2017

See all articles by Massimo Egidi

Massimo Egidi

Luiss Guido Carli University

Giacomo Sillari

Luiss Guido Carli

Date Written: November 28, 2017

Abstract

In this paper, we address theoretical developments of choice models in the financial field, starting with the efficient market hypothesis (EMH) in financial markets and its implications, then moving on to a review of the theoretical and empirical challenges posed by psychological and behavioral studies to the EMH, paying particular attention, once again, to these arguments’ implications on the activity of financial operators. Finally, we look at the most recent studies aimed at identifying the neurophysiological links of financial choices.

Keywords: Behavioral Economics, NeuroEconomics

JEL Classification: G40 ,G41,D87

Suggested Citation

Egidi, Massimo and Sillari, Giacomo, The Psychology of Financial Choices: From Classical and Behavioral Finance to Neurofinance (November 28, 2017). Available at SSRN: https://ssrn.com/abstract=3078670 or http://dx.doi.org/10.2139/ssrn.3078670

Massimo Egidi (Contact Author)

Luiss Guido Carli University ( email )

viale Pola 12
Roma, Roma 00198
Italy

Giacomo Sillari

Luiss Guido Carli ( email )

United States

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