A Survey of Behavioral Finance

ArXiv ID: ssrn-332266 “View on arXiv”

Authors: Unknown

Abstract

Behavioral finance argues that some financial phenomena can plausibly be understood using models in which some agents are not fully rational. The field has two

Keywords: Behavioral finance, Asset pricing, Rational agents, Financial phenomena, Equities

Complexity vs Empirical Score

• Math Complexity: 2.0/10
• Empirical Rigor: 1.0/10
• Quadrant: Philosophers
• Why: The paper is a comprehensive literature review discussing concepts like limits to arbitrage and psychology, which are conceptual and theoretical, lacking dense mathematical derivations or empirical backtesting results.

  flowchart TD
    A["Research Goal: Review behavioral finance models with non-rational agents"] --> B["Data/Inputs: Empirical asset pricing anomalies, survey data"]
    B --> C["Key Methodology: Literature survey, model comparison"]
    C --> D["Computational Processes: Psychological bias analysis, agent-based simulations"]
    D --> E{"Key Findings/Outcomes"}
    E --> F["Deviations from rational expectations"]
    E --> G["Persistent equity anomalies explained"]
    E --> H["Limited arbitrage success"]