Document Type
Discussion Paper
Publication Date
2-1-1998
CFDP Number
1172
CFDP Pages
34
Abstract
Recent literature in empirical finance is surveyed in its relation to underlying behavioral principles, principles which come primarily from psychology, sociology and anthropology. The behavioral principles discussed are: prospect theory, regret and cognitive dissonance, anchoring, mental compartments, overconfidence, over- and underreaction, representativeness heuristic, the disjunction effect, gambling behavior and speculation, perceived irrelevance of history, magical thinking, quasi-magical thinking, attention anomalies, the availability heuristic, culture and social contagion, and global culture.
Recommended Citation
Shiller, Robert J., "Human Behavior and the Efficiency of the Financial System" (1998). Cowles Foundation Discussion Papers. 1420.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/1420