When it comes to financial affairs, there are two schools of thought: Traditional financial theory and behavioral finance. Traditional financial theory assumes that people make decisions by gathering ...

The author of a paper in a previous issue of Journal of Post Keynesian Economics suggested that developments in behavioral finance might lead Post Keynesian economists to a new "general theory of ...

In their paper "Behavioral Finance and Post Keynesian—Institutionalist Theories of Financial Markets," Raines and Leathers discuss how the theories of Keynes, Davidson, and Galbraith could explain ...

Robert Shiller, a professor of economics at Yale University, made a prediction in 2005 that a massive bubble was developing in the housing market, and was proved right just two years later, it seemed ...

Investing in the financial markets is a complex endeavor influenced not only by economic factors and market dynamics but also by human behavior. Traditional finance theory assumes that investors make ...

Behavioral Finance is the application of psychology to finance and investing. It has produced deep insights into how investors think and behave as well as how financial markets behave. Learn more ...

Managing money can be a complex and emotional endeavor when it involves our family funds, but when it comes to those of the businesses we run, it is even more complicated. One wrong move and the ...

New Year’s is a traditional time to make resolutions and set goals. As behavioral economists know, it is also prime time for hyperbolic discounting. What is hyperbolic discounting? In daily life, it ...

In his pathbreaking book, The Structure of Scientific Revolutions, Thomas Kuhn argued that science does not advance by the simple accretion of knowledge through experimentation and observation. There ...

Discover the base rate fallacy's impact on investing decisions. Learn how overlooking this cognitive bias can lead to financial misjudgments and market misconceptions.