Traditionally, economists have based their analysis of financial markets and corporate finance on the assumption that agents are fully rational, emotionless, self-interested maximizers of expected utility. However, behavioural economists are increasingly recognizing that financial decision makers may be subject to psychological biases, and the effects of emotions. Examples of this include the effects on investors’ and managers’ decision-making of such biases as excessive optimism, overconfidence, confirmation bias, and illusion of control. At a practical level, the current state of the financial markets suggests that trust between investors and managers is of paramount importance.
Routledge Advances in Behavioural Economics and Finance presents innovative and cutting edge research in this fast paced and rapidly growing area, and will be of great interest to academics, practitioners, and policy-makers alike.
All proposals for new books in the series can be sent to the series editor, Roger Frantz, at [email protected].
By Stavros Drakopoulos, Ioannis Katselidis
December 01, 2023
With the rise of modern behavioural economics and increasing interest in subjective well-being research, the question of the relationship between economics and psychology has again been brought to the fore. Drawing on the history of economic thought, this book explores the historical relationship ...
Edited
By Hannah Josepha Rachel Altman, Morris Altman, Benno Torgler
September 25, 2023
Economists have entered into the realm of sports to provide what they believe to be more cogent explanations for sport-related behaviour and to suggest ways in which incentives can improve sports outcomes. But prices and income, the traditional workhorses of conventional economics, can only provide...
By Gerald A. Cory Jr.
December 30, 2022
Economic Biology and Behavioral Economics: The Prophesy of Alfred Marshall explores the prophesy of Alfred Marshall, the grand synthesizer of neoclassical economics, that the "Mecca of the economist lies in economic biology". The book presents the proof of that prophesy through examination and ...
By Maria C. de Campos
September 08, 2022
In recent years, the idea of "nudges" – small changes in individual choice architecture that do not involve incentives or coercion – has entered policy discourse and practice to address various problems ranging from energy usage to retirement savings. However, how nudges can be incorporated into ...
Edited
By Jens Harbecke, Carsten Herrmann-Pillath
April 29, 2022
Neuroeconomics has emerged as a paradigmatic field where neuroscience and the social sciences are integrated in one analytical and empirical approach. However, the different disciplines involved often only relate to each other via the shared object of research, and less through the constructing of ...
Edited
By Gary Charness, Mark Pingle
August 27, 2021
Applying experimental methods has become one of the most powerful and versatile ways to obtain economic insights, and experimental economics has especially supported the development of behavioral economics. The Art of Experimental Economics identifies and reviews 20 of the most important papers to ...
By Cass R. Sunstein, Lucia A. Reisch
January 17, 2019
Many "nudges" aim to make life simpler, safer, or easier for people to navigate, but what do members of the public really think about these policies? Drawing on surveys from numerous nations around the world, Sunstein and Reisch explore whether citizens approve of nudge policies. Their most ...
By Cameron Elliott Gordon
June 28, 2018
Corporate governance failures are all too frequent and their patterns and outcomes seem avoidably familiar. This book examines the findings of behavioural finance and economics that are most relevant to governance problems, and suggests potential solutions that are best suited to real-world ...
By Graham Mallard
February 12, 2018
Economics Nobel Laureate Herbert Simon developed the concept of bounded rationality in the 1950s. This asserts that the cognitive abilities of human decision-makers are not always sufficient to find optimal solutions to complex real-life problems, leading decision-makers to find satisfactory, ...
By Philip Alexander Rajko
November 08, 2013
Economics and moral philosophy have in recent years been considered to be distinct and separate fields. However, behavioural economics has started to reconcile various aspects of morality and economics, which has offered new conceptual opportunities to advance economics ethics and business ethics....