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EC4024 Lecture 17: Behavioural Finance 1
Stephen Kinsella: www.stephenkinsella.net
This Time

 RECAP:


      EMH/AMH


      Expected Utility Theory


 Behavioural Finance


 Prospect Theory
Recap



        Efficient Markets Hypothesis
        Adaptive Markets Hypothesis
        Expected Utility Theory
Expected Utility Theory   www.xkvd.com
Prospect Theory
Kahneman  Tversky (1979)
Theory is: people treat losses
differently to gains.
Derivation
Application
Next Time
Anomalies
Read Liebowitz  Thaler

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Ec4024 Lecture1819 Behavioural Fin