BehavioralFinance

ArXiv ID: ssrn-2480892 “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: 2.0/10
• Empirical Rigor: 1.0/10
• Quadrant: Philosophers
• Why: The paper is a conceptual review focusing on psychological biases and theories, with minimal advanced mathematical formulas or empirical backtesting. It primarily discusses theoretical mechanisms and qualitative evidence.

  flowchart TD
    A["Research Goal: Investigate impact of cognitive biases on equities investment decisions"] --> B{"Methodology"};
    B --> C["Data: Investor trading records & survey responses"];
    B --> D["Experiment: Lab-based investment simulations"];
    C --> E["Computational Process: Statistical analysis of bias indicators"];
    D --> E;
    E --> F["Key Findings: Systematic biases lead to suboptimal portfolio performance"];
    E --> G["Outcomes: Framework for predicting market anomalies"];