Recent Developments in Behavioral Finance
Event details
| Date | 21.05.2014 |
| Hour | 12:00 › 13:00 |
| Speaker | Glenn HARRISON (Georgia State University) |
| Location | |
| Category | Conferences - Seminars |
The empirical foundations of behavioral finance evolved from behavioral economics and, in turn, experimental economics. Many of those empirical claims are flimsy at best when examined with any theoretical, experimental or econometric rigor. However, some persist. This survey reviews what we know empirically from what we just claim to know. The core subject areas are risk attitudes, risk perception, and time preferences. Within the area of risk attitudes we examine the axioms underlying EUT, downside risk aversion, “loss aversion” and asset integration puzzles. Within the area of risk perception we examine static risk perception and SEU, uncertainty and ambiguity aversion, dynamic risk perception and Bayes Rule, and “overconfidence.” Within the area of time preferences we examine the constancy of discount rates with horizon, the “magnitude effect,” intertemporal risk aversion and non-additive intertemporal utility, and the concept of “self control.”
Practical information
- Informed public
- Free
Organizer
- Prof. Damir Filipovic, with the support of the EPFL Center on Risk Analysis and Governance (CRAG) http://crag.epfl.ch