11. Prospect Theory and Behavioral Finance

  1. H. Kent Baker and
  2. John R. Nofsinger
  1. Morris Altman

Published Online: 29 NOV 2011

DOI: 10.1002/9781118258415.ch11

Behavioral Finance: Investors, Corporations, and Markets

Behavioral Finance: Investors, Corporations, and Markets

How to Cite

Altman, M. (2010) Prospect Theory and Behavioral Finance, in Behavioral Finance: Investors, Corporations, and Markets (eds H. K. Baker and J. R. Nofsinger), John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118258415.ch11

Author Information

  1. Professor and Head, School of Economics and Finance, Victoria University of Wellington

Publication History

  1. Published Online: 29 NOV 2011
  2. Published Print: 20 SEP 2010

ISBN Information

Print ISBN: 9780470499115

Online ISBN: 9781118258415

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Keywords:

  • behavioral finance;
  • investments;
  • stock market;
  • subjective expected utility;
  • efficient market hypothesis

Summary

This chapter contains sections titled:

  • Introduction

  • Behavioral Finance and Behavioral Assumptions

  • The Nature of Prospect Theory

  • Prospect Theory and the Choice Behavior

  • Implications of Prospect Theory for Choice Behavior

  • Some Implications for Behavioral Financial Relevance

  • Summary and Conclusions

  • Discussion Questions

  • About the Author