Advances in Behavioral Finance Volume II

This book offers a definitive and wide-ranging overview of developments in behavioral finance over the past ten years. In 1993 the first volume provided the standard reference to this new approach in finance--an approach that as editor Richard Thaler put it entertains the possibility that some of the agents in the economy behave less than fully rationally some of the time. Much has changed since then. Not least the bursting of the Internet bubble and the subsequent market decline further demonstrated that financial markets often fail to behave as they would if trading were truly dominated by the fully rational investors who populate financial theories. Behavioral finance has made an indelible mark on areas from asset pricing to individual investor behavior to corporate finance and continues to see exciting empirical and theoretical advances. Advances in Behavioral Finance Volume II constitutes the essential new resource in the field. It presents twenty recent papers by leading specialists that illustrate the abiding power of behavioral finance--of how specific departures from fully rational decision making by individual market agents can provide explanations of otherwise puzzling market phenomena. As with the first volume it reaches beyond the world of finance to suggest powerfully the importance of pursuing behavioral approaches to other areas of economic life. The contributors are Brad M. Barber Nicholas Barberis Shlomo Benartzi John Y. Campbell Emil M. Dabora Daniel Kent François Degeorge Kenneth A. Froot J. B. Heaton David Hirshleifer Harrison Hong Ming Huang Narasimhan Jegadeesh Josef Lakonishok Owen A. Lamont Roni Michaely Terrance Odean Jayendu Patel Tano Santos Andrei Shleifer Robert J. Shiller Jeremy C. Stein Avanidhar Subrahmanyam Richard H. Thaler Sheridan Titman Robert W. Vishny Kent L. Womack and Richard Zeckhauser.