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The human agent in behavioural finance: a Searlean perspective

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  • Philip Faulkner

Abstract

According to John Searle's theory of human ontology, intentional mental states such as beliefs and wants rely on non-intentional, Background, dispositions to produce rational behaviour. The distinction between intentional and non-intentional states is used as the basis on which to understand the various conceptions of human agency to be found in behavioural finance. The agent of behavioural finance is characterized in terms of three sets of psychological traits: prospect theory, heuristics and mental accounting. These are examined from a Searlean perspective and shown to rely on the interplay between various reflected upon and non-reflected upon elements, in keeping with the Searlean human ontology previously considered. A number of implications are drawn from these findings.

Suggested Citation

  • Philip Faulkner, 2001. "The human agent in behavioural finance: a Searlean perspective," Journal of Economic Methodology, Taylor & Francis Journals, vol. 9(1), pages 31-52.
    • Handle: RePEc:taf:jecmet:v:9:y:2001:i:1:p:31-52
    DOI: 10.1080/13501780110120091
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    References listed on IDEAS

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    1. Philip Faulkner, 2002. "Some problems with the conception of the human subject in critical realism," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 26(6), pages 739-751, November.
    2. Shefrin, Hersh & Statman, Meir, 1985. "The Disposition to Sell Winners Too Early and Ride Losers Too Long: Theory and Evidence," Journal of Finance, American Finance Association, vol. 40(3), pages 777-790, July.
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