Paper: SSRN 2702331

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

Complexity vs Empirical Score

  • Math Complexity: 3.0/10
  • Empirical Rigor: 2.0/10
  • Quadrant: Philosophers — conceptual discussion, limited math and data

Why this score: 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.

Research Flowchart

  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"]