BehavioralFinance: An Introduction

ArXiv ID: ssrn-1488110 “View on arXiv”

Authors: Unknown

Abstract

This survey introduces and reviews the field of behavioral finance. It outlines the traditional finance approach, which builds upon rational acting investors, i

Keywords: Behavioral Finance, Rational Investors, Cognitive Biases, Market Efficiency, General Finance

Complexity vs Empirical Score

• Math Complexity: 1.5/10
• Empirical Rigor: 2.0/10
• Quadrant: Philosophers
• Why: This paper is a high-level survey that discusses theoretical concepts and empirical anomalies without presenting new mathematical models or implementation details for backtesting.

  flowchart TD
    A["Research Goal:<br/>Review Behavioral Finance Foundations"] --> B["Methodology:<br/>Literature Survey & Framework Analysis"]
    B --> C["Data/Inputs:<br/>Traditional Finance Models<br/>Cognitive Bias Studies"]
    C --> D{"Computational Process:<br/>Rational vs. Behavioral Comparison"}
    D --> E["Key Finding 1:<br/>Investors often deviate from rationality"]
    D --> F["Key Finding 2:<br/>Cognitive biases impact markets"]
    D --> G["Key Finding 3:<br/>Market efficiency challenged"]
    E & F & G --> H["Outcome:<br/>Integrated Behavioral Finance Framework"]