Behavioral Economics

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Behavioral Economics

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1asabel
gen. 6, 2009, 6:55 pm

I would like a good overview of Behavioral Economics, especially as it relates to finance and the Efficient Market Hypothesis. I have read A Random Walk Down Wall Street and Capital Ideas, the authors of each of which are proponents of the Efficient Market Hypothesis. At the moment, I find persuasive the argument that little can be gained from inefficiencies in the market, whatever their cause, because any such inefficiencies would long ago have been arbitraged away. My friends in finance scoff at this argument (and current events in the market lend the EMH little credence), and I am inclined to explore the other side of the story in greater depth. I am not a trader, so my interest in this is purely academic. Trolling Amazon, I found Inefficient Markets: An Introduction to Behavioral Finance by Andrei Shleifer and A NonRandom Walk Down Wall Street by Andrew W. Lo, neither of which was well-received by Amazon readers.

Again, I emphasize that I have the luxury of not being a trader, so I am not interested in books suggesting one trading technique over another. I find the academic debate itself fascinating, not so much its application, and feel that my reading thus far has disproportionately represented one side at the expense of the other.

All recommendations are much appreciated. Thank you!

2phknrocket1k
Editat: des. 30, 2009, 9:30 pm

There is "Advances in Behavioral Economics" which is a collection of working papers from various professors if you would like to see academic scholarship in the subject matter.

Though not specifically on the topic of the Efficient Market's Hypothesis but more of a general applied Behavioral approach to Economics in general.

When I was in college I took a course on Behavioral Economics and here are relevant links that include lecture slides and pointers to papers, books presentations on topics like Behavioral Decision Theory, Behavioral Game Theory, Behavioral Experimental Economics.

http://dss.ucsd.edu/~vcrawfor/econ142.html
http://dss.ucsd.edu/~vcrawfor/CrawfordMengCabdriverSlides6Sept08.pdf
http://dss.ucsd.edu/~vcrawfor/UndergradBehaviouralGameTheory.html
http://dss.ucsd.edu/~vcrawfor/SecondYrAdvMicroBehaviouralEcon.html
http://dss.ucsd.edu/~vcrawfor/LevelkThinkingSlides.pdf
http://dss.ucsd.edu/~vcrawfor/CrawfordMengCabdriverSlides6Sept08.pdf

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