the most important feature of the approach in this book is that it provides a theoretical structure to analyze the impact of behavioral beliefs and preferences on all asset prices through the SDF. In this respect, the approach in this paper develops…
Economic and psychology share common intellectual roots. At least as they are practised in the English-speaking world, both have their origins in the philosophy of the 'British empiricist' school of the seventeenth to nineteenth centuries. But as…
Investors walk a tricky tightrope of risk and performance. Those who choose too little risk may fail to reach their goal. Those who choose too
much may lose their balance, with potentially disastrous results. How
should investors decide what level…
This particular book was built around the problems of a little cosmos that in many ways provides a good working model of the larger society in which we live. Although the stock market represents only a certain part of the lifeactivity of a certain…
This book offers an account and development of the details that indicate
how my thinking changed and led me to a new appreciation of the classical
scholars and of F. A. Hayek. It is true that I had read Hayek (1945) long ago, and its theme even led…
The Cambridge Handbook of Psychology and Economic Behaviour is a valuable reference resource dedicated to improving
our understanding of the economic mind and economic behaviour. Employing empirical methods – including laboratory experiments,…
The analysis developed in this book follows
a few simple but unconventional ideas. Investors are assumed to exhibit the same
basic behavior during a speculative episode whether they trade stocks, real estate,
or postage stamps. This idea is…
Defenders of economic orthodoxy often argue that asset inflation results from emotional intrusions into a rational world. But emotions are unavoidable. Rational calculations can be based only on the past. Instability continually arises, especially…
The idea for this book developed in October 1996 on the eve of the passage of the Economic Espionage Act (EEA) in discussions with a colleague
who specialized in intellectual property law and had been practicing for
some 15 years, litigating…