Behavioral Finance: Understanding the Social, Cognitive, and Economic Debates

Historically, economics has assumed that financial markets are efficient, or that an asset's market price at any given point in time reflects its underlying value. However, there now exists a considerable accumulation of evidence that supports the behavioral finance point of view that this need not be the case. Divided into five comprehensive parts, Behavioral Finance offers investors an in-depth guide to the evolving science of behavioral finance. Written by Edwin Burton and Sunit Shah—economics experts with experience in both academia and the financial marketplace—this reliable resource illuminates the wide variety of issues that comprise behavioral finance.

The book explores the Efficient Market Hypothesis, highlights noise trader theory and models including the noted Shleifer model, examines research into psychological behavior pioneered by Daniel Kahneman and Amos Tversky, and offers an examination of serial correlation patterns in stock price data.

To achieve better investment results, we must first overcome our behavioral biases. This book will put you in a better position to do so.