This book offers a definitive and wide-ranging overview of developments in behavioral finance over the past ten years. In 1993, the first volume provided the standard reference to this new approach in finance--an approach that, as editor Richard Thaler put it, "entertains the possibility that...

Price management is one of the most central and sensitive elements of the process of managing a successful brand. Even a small change in price can have a disproportionate change in profitability, thereby increasing the importance of accurate and scientific ways of determining optimal prices....

The approach taken by researchers in the area of behavioral pricing is based on the psychological principles of human perception and information processing as well as on sociological principles of human relations and social norms. In this e-book we feature several researchers who have...

Empirical studies have shown that implied volatilities of long-term options react quite strongly to changes in implied volatilities of short-term options and do not display the rationally expected smoothing behavior. Given the observed strong mean-reversion in volatility, those findings have...