Behavioral Finance
Behavioural finance (JEL G4) applies behavioural and psychological insights to financial decisions and markets.
Find Topic with PaperMindSoonFind papers & topics
Tools & resources
Learn & explore
VideoSoon
Scope
It includes investor biases, market anomalies, limits to arbitrage, and sentiment.
Sub-topics
Core questions
- How do psychological biases affect investors?
- Why do market anomalies persist?
- What are the limits to arbitrage?
Key concepts
- Investor biases
- Market anomalies
- Limits to arbitrage
- Overconfidence
- Sentiment
Related topics
Frequently asked questions
- What are limits to arbitrage?
- Frictions (risk, costs) that prevent rational traders from fully correcting mispricing caused by biased investors.
Methods for this concept
Related concepts
- Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
- Macro-Based Behavioral Economics
- Micro-Based Behavioral Economics
- Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
- General Financial Markets
- Financial Markets