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

112 Pages Posted: 11 Oct 2019

See all articles by David A. Hirshleifer

David A. Hirshleifer

Marshall School of Business, USC; University of California, Irvine - Paul Merage School of Business; National Bureau of Economic Research (NBER)

Date Written: June 29, 2019

Abstract

This is the long version of presentation slides on "Attention, Psychological Bias, and Social Interactions." 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. and Hirshleifer, David A., Attention, Psychological Bias, and Social Interactions (Presentation Slides, for Finance Theory Group Wharton Summer School (Long Version)) (June 29, 2019). Available at SSRN: https://ssrn.com/abstract=3461934 or http://dx.doi.org/10.2139/ssrn.3461934

David A. Hirshleifer (Contact Author)

Marshall School of Business, USC ( email )

Marshall School of Business
Los Angeles, CA 90089
United States

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/

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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