ОТ КЛАСИЧЕСКА КЪМ ПОВЕДЕНЧЕСКА ФИНАНСОВА ТЕОРИЯ
TOWARDS BEHAVIORAL FINANCE THEORY
Author(s): Teodor Sedlarski, Gabriela GeorgievaSubject(s): Economy, Micro-Economics, Financial Markets, Socio-Economic Research
Published by: Софийски университет »Св. Климент Охридски«
Keywords: prospect theory; behavioral finance; heuristics; behavioral asset pricing model
Summary/Abstract: This article summarizes fundamental concepts in the emerging field of behavioral finance theory. Traditional financial models are being extended with behavioral ones, which assume that markets are inefficient, market players are boundedly rational and investment bubbles exist, potentially leading to large scale financial crises. Behavioral finance enhances main theoretical elements of the contemporary financial paradigm – the portfolio theory, the capital asset pricing model and the efficient market hypothesis, substituting them with behavioral portfolio theory, behavioral asset pricing model and the adaptive market hypothesis. These are briefly analyzed in the article, as well as various known heuristics and financial market anomalies.
Journal: Годишник на Стопанския факултет на СУ „Св. Климент Охридски“
- Issue Year: 15/2018
- Issue No: 1
- Page Range: 207-241
- Page Count: 35
- Language: Bulgarian