Introduction: behavioral and evolutionary finance

Reading 7 the Behavioral Finance Perspective Introduction

To provide a framework for understanding the implications of the decision-making process for financial market practitioners, throughout this reading we will use an approach developed by decision theorist, Howard Raiffa. Raiffa (1997) discusses three approaches to the analysis of decisions that provide a more accurate view of a “real” person’s thought process. He uses the terms normative analysi...

A brief introduction to Behavioral Finance ∗

This report gives a brief introduction to Behavioral Finance. First, we present some thought-provoking examples based on empirical human behavior in risky and uncertain decision-making. Then, we present some history on rationality that is the support of formal theories on finance and economics. Finally, we introduce two applications of behavioral modelling in finance.

Evolutionary finance: introduction to the special issue

This paper introduces the special issue of the Journal of Mathematical Economics on Evolutionary Finance. © 2004 Elsevier B.V. All rights reserved.

An introduction to the Journal of Behavioral and Experimental Finance

Behavioral Finance Models and Behavioral Biases in Stock Price Forecasting

Stock market is affected by news and information. If the stock market is not efficient, the reaction of stock price to news and information will place the stock market in overreaction and under-reaction states. Many models have been already presented by using different tools and techniques to forecast the stock market behavior. In this study, the reaction of stock price in the stock market was ...