by Lucas Kedzia | Apr 8, 2018 | Behavioral Finance
The Disposition Effect Download PDF In an efficient market, of course, the disposition effect should not be present; the price paid for the asset is a sunk cost by the time of sale. However, the field of behavioral finance has proven many times that it was false: we...
by Lucas Kedzia | Mar 12, 2018 | Behavioral Finance
The Prospect Theory Open PDF => The prospect theory was developed by Daniel Kahneman and Amos Tversky between 1979 and 1992. They showed how human decisions depart from those predicted by standard economic theory in decision-making under uncertainty. The...
by Lucas Kedzia | Jan 25, 2018 | Behavioral Finance
The Concept of Time Inconsistency Download PDF In economics, time-inconsistency is the problem that arises when a decision maker, especially a policymaker, prefers one policy in advance but later enacts a different one. Deciding among alternative policies at...
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