Behavioral Finance
Limited Rationality in Financial Markets
Zusammenfassung
Over the last 50 years, neoclassical financial theory has been dominating our perception of what is happening in financial markets. It has spurred numerous valuable theories and concepts all based on the concept of Homo Economicus, the strictly rational economic man. However, humans do not always act in a strictly rational manner. For students and practitioners alike, our book aims at opening the door to another perspective on financial markets: a behavioral perspective based on a Homo Oeconomicus Humanus. This agent acts with limited rationality when making decisions. He/she uses heuristics and shortcuts and is prone to the influence of emotions. This sounds familiar in real life and can be transferred to what happens in financial markets, too.
Schlagworte
Homo Economicus Traditional Finance Rational Economic Man finance theory speculative bubbles investor behavior market anomalies asset price bubbles decision making processes limited rationality perception of information investment decisions Wealth Management corporate management Financial Nudging- 7–14 Dedication 7–14
- 15–20 Introduction 15–20
- 171–266 Section III – The Homo Economicus Humanus within the information and decision-making process 171–266
- 361–372 Glossary 361–372
- 373–400 Literature 373–400
- 401–403 Index 401–403