Emotions, beliefs and illusionary finance

by Salzman, Diego A.

Abstract (Summary)
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.
Bibliographical Information:


School:Université catholique de Louvain

School Location:Belgium

Source Type:Master's Thesis

Keywords:behavioral finance illusionary financial decision making


Date of Publication:06/28/2007

© 2009 All Rights Reserved.