ON FINANCIAL COMPLEXITY AND BEHAVIORAL FINANCE THEORY
88 Citations•2004•
WU Hai-hu
Economic Theory and Business Management
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Abstract
Financial market is complex and heterogeneity is focused by financial academy, on which be- havioral finance theory has great impact. Based on subjective complexity and limited rationality, behavioral finance theory introduces psychology and sociology, analyzes cognitive bias of investors, and makes inves- tors behavior models. This paper analyzes and evaluates financial complexity, micro foundations of behav- ioral finance, and theoretical models.