Suchergebnisse

The rise of the first implicit ideas in the field of behavioural finance is examined from a historical point of view, taking into consideration the evolution of economic theories. The first documented manifestation of irrational behaviour on a market level, which took place during the 17th century, is presented. The foundations of Daniel Bernoulli's Decision theory from the 18th century are systemized in regard to the implementation of behavioural aspects and the reference to the contemporary Prospect theory. The classical and early neoclassical schools of economic thought, where the idea that economic decisions are also being influenced by emotional stimulus can be found in the works of economists like Hermann Heinrich Gossen, Adam Smith, Jeremy Bentham, William Stanley Jevons, Léon Walras and Edgeworth, are examined. The neoclassical school of economics, where the representatives of marginalism limit the idea of the complexity of human nature, is also analysed. In conclusion, a short description of some of the contemporary aspects of the science of behavioural finance is made.

The main differences between the neoclassical financial theory and behavioural finance are presented. They include the concept of rational economic agents, the notion of objective probability, the capital asset pricing models, the portfolio theory and the efficient market hypothesis. The theory of expected utility and the prospect theory are the most distinguished scientific achievements in conventional and behavioural finance respectively. The theoretical assumptions and the practical implementations, on which they are built, are summarized. The psychological effects, determining the decision making process of economic agents in uncertainty, are alleged and compared to the notions of the normative theory. The two different viewpoints of the two opposing fields in finance are presented with regard to the financial markets and instruments, the decisions made by investors and the portfolios constructed by them.