Emotions, beliefs and illusionary finance
The purpose of this thesis is to integrate behavioral finance with market microstructure and financial decision-making. Specifically, I focus on two issues concerning the integration of psycho-physiological mechanisms and the informational content of prices in financial markets: firstly, the role of emotions in financial decision making and how as an adaptive mechanism, they show to be more suitable for survival than pure rationality (in an economic sense); and secondly, the empirical and theoretical testing of how cognitive illusions and polysemy affect the informational content of prices.
School:Université catholique de Louvain
Source Type:Master's Thesis
Keywords:behavioral finance illusionary financial decision making
Date of Publication:06/28/2007