BehavioralFinance: An Introduction
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"]