27. Trust Behavior: The Essential Foundation of Financial Markets

  1. H. Kent Baker and
  2. John R. Nofsinger
  1. Lynn A. Stout

Published Online: 29 NOV 2011

DOI: 10.1002/9781118258415.ch27

Behavioral Finance: Investors, Corporations, and Markets

Behavioral Finance: Investors, Corporations, and Markets

How to Cite

Stout, L. A. (2010) Trust Behavior: The Essential Foundation of Financial Markets, 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.ch27

Author Information

  1. Paul Hastings Professor of Corporate and Securities Law, UCLA School of Law

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:

  • trust behavior;
  • securities markets;
  • Bernard Madoff;
  • rational expectations;
  • investors

Summary

This chapter contains sections titled:

  • Introduction

  • The Myth of the Rational Expectations Investor

  • The “Trusting Investor”

  • Trust, Investment, and the “Trust Game”

  • Summary and Conclusions

  • Discussion Questions

  • About the Author