This paper provides the first evidence for empirical tests of the impact of rational expectations as well as behavioral biases, including among other animal spirits such as defined by Akerlof and Shiller on the variability of trading. Using a daily data for five international capital markets in...

"Behavioral finance helps investors understand unusual asset prices and empirical observations originating out of capital markets. At its core, this field of study aids investors navigating complex psychological trappings in market behavior and making smarter investment decisions. Behavioral...

In this paper, we address theoretical developments of choice models in the financial field, starting with the efficient market hypothesis (EMH) in financial markets and its implications, then moving on to a review of the theoretical and empirical challenges posed by psychological and behavioral...

There is nowadays an extensive literature about irrationality of the economic human decision making. Economic Psychology and Behavioral Finances attempt to provide better models of the economic and financial human reasoning, using knowledge provided by Psychology and Behavioral Sciences....