Martin Sewell, from University College London, gives a survey of all the major contributions since the field started in `An Introduction to Behavioural Finance.'
The bits that jumped out at me to look at further include a study by Thaler in 1980 where he identifies 5 problems that arise through biases in our decision making:
- Underweighting of opportunity costs
 - Failure to ignore sunk costs
 - Search Behaviour
 - Choosing not to choose and regret
 - precommitment and self-control
 
The books I am probably going to try get ahold of and read (comments welcome of a better place to start) are, in likely order:
- Inefficient Markets: An introduction to Behavioural Finance - Shleifer (2000)
 - Heurisitics and Biases: The Psychology of Intuitive Judgement - Khaneman et al. (2002)
 - Irrational Exuberance - Shleifer (2000)
 - The Psychology of Judgement and Decision Making - Plous (1993)
 - Beyond Greed and Fear - Shefrin (2000)
 - Simple Heuristics That Make Us Smart - Gigerenzer, Todd & the ABC Research Group (1999)
 
Clearly I can't buy every book that I would like to read, so I am going to have to ask people who may have books on a wish list if I can borrow them...
Hi,
ReplyDeleteFantastic post, wonderful breakdowns . Simply put ………. Very useful . Thanks heaps for sharing your experiences and knowledge.