Traditional vs. BehavioralFinance

ArXiv ID: ssrn-1596888 “View on arXiv”

Authors: Unknown

Abstract

The traditional finance researcher sees financial settings populated not by the error-prone and emotional Homo sapiens, but by the awesome Homo economicus. The

Keywords: Homo economicus, behavioral finance, rational expectations, financial modeling, psychology, Multi-Asset

Complexity vs Empirical Score

• Math Complexity: 1.0/10
• Empirical Rigor: 1.0/10
• Quadrant: Philosophers
• Why: The paper is a conceptual discussion comparing traditional vs. behavioral finance paradigms without presenting mathematical models or empirical backtesting data.

  flowchart TD
    A["Research Question:<br/>Traditional vs. Behavioral Finance"] --> B{"Methodology"}
    B --> C["Key Input:<br/>Homo Economicus"]
    B --> D["Key Input:<br/>Homo Sapiens"]
    C --> E["Computational Model:<br/>Rational Expectations"]
    D --> F["Computational Model:<br/>Psychology & Emotions"]
    E --> G["Outcome:<br/>Efficient Markets"]
    F --> H["Outcome:<br/>Multi-Asset Anomalies"]