Economic Assumptions

Modern Finance vs. Behavioural Finance: An Overview of Key Concepts and Major Arguments ArXiv ID: ssrn-1678414 “View on arXiv” Authors: Unknown Abstract Modern Finance has dominated the area of financial economics for at least four decades. Based on a set of strong but highly unrealistic assumptions its advocate Keywords: Modern Finance, Financial Economics, Economic Assumptions, Economic Models, Theoretical Critique, Academic/Financial Economics Complexity vs Empirical Score Math Complexity: 2.0/10 Empirical Rigor: 1.0/10 Quadrant: Philosophers Why: The paper is a conceptual overview comparing theoretical frameworks, with no mathematical derivations or empirical backtesting. It focuses on arguments and assumptions rather than data or implementation. flowchart TD A["Research Goal Compare Modern & Behavioral Finance"] --> B["Methodology Literature Review & Theoretical Analysis"] B --> C["Data/Inputs Key Assumptions & Major Arguments"] C --> D["Computational Process Critique & Comparison of Frameworks"] D --> E["Key Findings MF: Highly unrealistic assumptions BF: Incorporates psychological factors"]

ModernFinancevs. BehaviouralFinance: An Overview of Key Concepts and Major Arguments ArXiv ID: ssrn-746204 “View on arXiv” Authors: Unknown Abstract Modern Finance has dominated the area of financial economics for at least four decades. Based on a set of strong but highly unrealistic assumptions its advocate Keywords: Modern Finance, Financial Economics, Economic Assumptions, Economic Models, Theoretical Critique, Academic/Financial Economics Complexity vs Empirical Score Math Complexity: 2.0/10 Empirical Rigor: 1.0/10 Quadrant: Philosophers Why: The paper appears to be a conceptual overview comparing two theoretical frameworks in finance, likely involving descriptive arguments and literature review rather than advanced mathematical models or empirical backtesting. flowchart TD A["Research Goal: Compare Modern vs. Behavioral Finance"] --> B["Methodology: Literature Review & Conceptual Analysis"] B --> C["Inputs: Historical Assumptions & Empirical Anomalies"] C --> D{"Computational Process: Theoretical Framework Comparison"} D --> E["Modern Finance Assumptions: Rationality, Efficiency"] D --> F["Behavioral Finance Assumptions: Psychology, Biases"] E --> G["Key Findings: Strong theoretical models but limited real-world predictive power"] F --> G