We develop a positive behavioral portfolio theory (BPT) and explore its implications for
portfolio constrution and security design. The optimal portfolios of BPT investors resemble …

Business School Press, 1999). 1. For a discussion of behaviorally oriented models of corporate
financial decision making, see J. Heaton,“Managerial Optimism and Corporate Finance,” …

The concept of self-control is incorporated in a theory of individual intertemporal choice by
modeling the individual as an organization. The individual at a point in time is assumed to be …

… -making process, Hersh Shefrin uses the latest psychological … Shefrin argues that financial
practitioners must acknowledge … real-world examples, Shefrin points out the common but …

This paper develops a capital asset pricing theory in a market where noise traders interact
with information traders. Noise traders are traders who commit cognitive errors while …

One of the most significant and unique features in Kahneman and Tversky's approach to
choice under uncertainty is aversion to loss realization. This paper is concerned with two …

Behavioral finance is the study of how psychology affects financial decision making and
financial markets. It is increasingly becoming the common way of understanding investor …

Self‐control, mental accounting, and framing are incorporated in a behavioral enrichment of
the life‐cycle theory of saving called the Behavioral Life‐Cycle (BLC) hypothesis. The key …

… In the Thaler-Shefrin framework such difficulties are regarded as … section presents a thumbnail
sketch of the Thaler-Shefrin … For further details, see the two papers by Thaler and Shefrin. …

Behavioral finance endeavors to bridge the gap between finance and psychology. Now an
established field, behavioral finance studies investor decision processes which in turn shed …