Quantitative behavioral finance
Tuesday, May 6, 2008 | | |Behavioral Finance quantitative is a new discipline that uses mathematical and statistical methods to understand the behavioral bias in conjunction with the assessment. Some of this work was led by Gunduz Caginalp (Professor of Mathematics and editor of the Journal of Behavioral Finance during 2001-2004) and collaborators, including Vernon Smith (2002 Nobel laureate in economics), David Porter, Don Balenovich, Vladimira Ilieva, Ahmet Duran, Huseyin Merdan). Studies conducted by Jeff Madura, Ray Sturm and others have shown significant effects on the behaviour of stocks and exchange traded funds.
Searches can be grouped into the following areas:
1. Empirical studies show that significant differences with the classical theories.
2. Modeling using the concepts of behaviour effects and non-classical assumption of the finitude of the asset.
3. Estimates based on these methods.
4. Experimental studies asset markets and the use of models to predict experiences.
Searches can be grouped into the following areas:
1. Empirical studies show that significant differences with the classical theories.
2. Modeling using the concepts of behaviour effects and non-classical assumption of the finitude of the asset.
3. Estimates based on these methods.
4. Experimental studies asset markets and the use of models to predict experiences.
