Behavioral Finance
Abstract
The field of behavioral finance tries to make sense of the behavior of investors, markets, and firms using frameworks that are psychologically more realistic than their predecessors. This talk offers an introduction to the field, covering some of the most important concepts – extrapolation, overconfidence, and prospect theory – as well as applications to understanding asset prices, portfolio choice, and corporate finance.
About the speaker
Prof. Nicholas Barberis received his BA in Mathematics from Cambridge University in 1991 and his PhD in Business Economics from Harvard University in 1996. He had then taught at the Booth School of Business at the University of Chicago before he joined Yale School of Management in 2004, where he is currently the Stephen and Camille Schramm Professor of Finance.
Prof. Barberis’s research is in the field of behavioral finance, in particular, on applications of cognitive psychology to understanding investor trading behavior and the pricing of financial assets. He has published extensively in the top economics and finance journals, gives frequent presentations about his work to both academic and non-academic audiences, and has won numerous awards for both research and teaching including the Yale SOM Alumni Association Teaching Award in 2006, 2009 and 2013, and the Jack Treynor Prize in 2014. He is also a Research Associate of the National Bureau of Economic Research in US and a Fellow of the Behavioral Economics Roundtable of the Russell Sage Foundation.
