Attention, Psychological Bias, and Social Interactions (Presentation Slides, for Finance Theory Group Wharton Summer School)

92 Pages Posted: 11 Oct 2019

See all articles by David A. Hirshleifer

David A. Hirshleifer

University of California, Irvine - Paul Merage School of Business; NBER

Date Written: June 29, 2019

Abstract

Many of the psychological biases studied in behavioral finance derive from limited cognitive processing power. I will discuss a general framework for modeling limited attention and economic decisions, and applications to financial issues. I will then turn to how limited attention and other psychological factors bias the transmission of information and behaviors between financial decision makers. I will describe applications of these ideas to the evolution of agents’ beliefs, trading or project decisions, asset pricing and return anomalies, and consumption/saving decisions.

Keywords: limited attention, behavioral finance, behavioral economics, social influence, transmission bias, anomalies, consumption, saving, investing

JEL Classification: G02, G14, G11, D03, D14, D84, D85, D91

Suggested Citation

Hirshleifer, David A., Attention, Psychological Bias, and Social Interactions (Presentation Slides, for Finance Theory Group Wharton Summer School) (June 29, 2019). Available at SSRN: https://ssrn.com/abstract=3461898 or http://dx.doi.org/10.2139/ssrn.3461898

David A. Hirshleifer (Contact Author)

University of California, Irvine - Paul Merage School of Business ( email )

Paul Merage School of Business
Irvine, CA California 92697-3125
United States

HOME PAGE: http://sites.uci.edu/dhirshle/

NBER ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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