- Behavioral Finance
Behavioral Finance (BF) studies how individual and collective behaviors influence market prices. People in general, and investors in particular, are not totally "rational" in their decisions. They are "under influence." Thus, BF deals mostly with investors irrationality / bounded rationality / cognitive and decision biases.
(Added: 5-Nov-2000 Hits: 2040)
- Boys will be Boys: Gender, Overconfidence, and Common Stock Investment
Theoretical models of financial markets built on the assumption that some investors are overconfident yield one central prediction: overconfident investors will trade too much. We test this prediction by partitioning investors on the basis of a variable that provides a natural proxy for overconfidence – gender. Psychological research has established that men are more prone to overconfidence than women. Thus, models of investor overconfidence predict that men will trade more and perform worse than women. A paper on behavioral finance in PDF format.
(Added: 22-Aug-2000 Hits: 1221)
- ELSE: The ESRC Centre for Economic Learning and Social Evolution
The Centre for Economic Learning and Social Evolution (ELSE) is an interdisciplinary research centre
funded by the U.K. Economic and Social Research Council. Their objective is to promote the study of models of interactive learning and social evolution with a view to providing an appropriate foundational basis for modeling in economics and related social sciences. Game theory is used as the focus for such studies.
(Added: 22-Jul-1999 Hits: 464)
- Laboratory for Experimental Economics and Political Science
The Laboratory is devoted to the development and applications of
a laboratory experimental methodology for a broad range of disciplines. Laboratory research is
focused on basic research issues, applied research issues, and the development of supporting
technology. Basic science includes the principles of behavior of single and multiple market
systems in relation to parametric and institutional settings; the principles of behavior in
relation to voting and political institutions; and the strategic behavior of game theory.
Applied research includes policy related research, the development of prototype markets,
smart markets, and the actual implementation of new forms of markets.
(Added: 22-Jul-1999 Hits: 532)