Basic concepts of behavioral finance theory Cover Image

Основни концепции в теорията на поведенческите финанси
Basic concepts of behavioral finance theory

Author(s): Teodor Sedlarski, Gergana Dimitrova
Subject(s): Economy, National Economy, Micro-Economics, Financial Markets
Published by: Софийски университет »Св. Климент Охридски«
Keywords: behavioral finance; public sector; prospect theory; efficient market hypothesis; rationality

Summary/Abstract: This article analyzes the basic concepts of behavior finance and its implied model of the economic agent which differs from the ‘homo economicus’ of traditional finance theory. Systematized are the more realistic assumptions regarding human decision making which stem from research in cognitive psychology and increasingly experimental economics. Outlined are implications for a methodologically more advanced public finance. Possibilities for enhanced economic policy recommendations are derived.

  • Issue Year: 12/2014
  • Issue No: 1
  • Page Range: 195-219
  • Page Count: 25
  • Language: Bulgarian