Behavioural finance
Also known as: behavioural finance
Behavioural finance is the study of the influence of psychology on the behaviour of investors or financial analysts.
Connections5
academic field studying herd behavior
Behavioural finance incorporates psychological insights to explain market anomalies like herd behavior, challenging the assumption of perfectly rational actors.
field studying the cognitive biases behind speculative decisions
This discipline examines how psychological factors like herd mentality and overconfidence lead investors to engage in irrational speculative activities.
Theoretical framework for understanding irrational market behavior
This field provides the academic basis for the concept of irrational exuberance by studying how cognitive biases and emotions influence financial decision-making.
Explains the psychology behind the Minsky moment
This field studies the cognitive biases and irrational exuberance that drive investors to take on the excessive debt that eventually leads to a Minsky moment.
study of psychological biases in futures trading
This field examines how human irrationality and herd behavior influence the pricing and volatility of futures contracts beyond fundamental economic data.