Behavioral Finance: Finance For Normal People

Behavioral Finance: Finance For Normal People by Meir Statman, PhD, MBA – IMCA

We often hear that behavioral finance is nothing more than a collection of stories about investors swayed by cognitive errors and misleading emotions; that it lacks the unified structure of standard finance. Yet today’s standard finance no longer is unified, because wide cracks have opened between its theory and the evidence. In a book I am writing, Finance for Normal People, to be published by Oxford University Press, I present behavioral finance as a unified structure that incorporates parts of standard finance, replaces others, and includes bridges between theory, evidence, and practice. I also dive into these topics in IMCA’s new online Applied Behavioral...