Behavioural Finance and Economics
This learning guide explores the topic of behavioural finance - coupled with the related subject of behavioural economics - or more academically prospect theory. The subject considers, as the name suggests, behaviours, preferences and actions in the context of financial or economic decisions. It challenges the assumption underlying most traditional financial and economic thinking and models that people are always rational in their decision making.
Watson, S. (2009) Behavioural Finance and Economics, Ashridge Learning Resource Centre Guides