Evidence supporting the weekend effect, also known as Monday Irrationality, has shown that conventional finance is unable to follow a rational behavior assumption. Many scholars have proposed a behavioral approach to explain this phenomenon; however, few studies have investigated this effect...

This paper applies a heuristic decision-making approach to a heterogeneous agent model with two types of investors and tests the model using historical observations of CSI 300. In this heuristic HAM, we use simple moving averages instead of complex capital asset pricing models to assess the...