Behavioral Finance

ArXiv ID: ssrn-2702331 “View on arXiv”

Authors: Unknown

Abstract

Behavioral finance studies the application of psychology to finance, with a focus on individual-level cognitive biases. I describe here the sources of judgment

Keywords: behavioral finance, cognitive biases, psychology, Equities

Complexity vs Empirical Score

  • Math Complexity: 3.0/10
  • Empirical Rigor: 2.0/10
  • Quadrant: Philosophers
  • Why: The paper discusses behavioral biases and psychological concepts without employing advanced mathematical formulations or heavy empirical backtesting frameworks. It is more descriptive and theoretical, aligning with a philosophical approach to finance.
  flowchart TD
    A["Research Goal: Explore psychology in finance & cognitive biases"] --> B["Method: Literature Review & Analysis"]
    B --> C["Data: Academic Papers & Investor Studies"]
    C --> D{"Analysis of Biases"}
    D --> E["Identify Cognitive Mechanisms"]
    E --> F["Key Outcomes:<br/>Impact on Equities<br/>Market Inefficiencies"]