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Critique Of Utility Theory, The Assumption Of Rationality And The Efficient Markets Hypothesis

In: Lecture Notes in Behavioral Finance

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  • Itzhak Venezia

Abstract

The following sections are included:Early Examples of Rationality Violations:Allais ParadoxEllsberg’s ParadoxCritique of the Early ParadoxesThe “new wave” Evidence (late 1970s early 1980s) in Finance and Psychology Leading to Behavioral Finance:Excess volatilitySiamese Twin Shares Royal Dutch/Shell TransportIndex inclusionKahneman and Tversky’s Examples of Cognitive Biases — I:RepresentativenessConservatism

Suggested Citation

  • Itzhak Venezia, 2018. "Critique Of Utility Theory, The Assumption Of Rationality And The Efficient Markets Hypothesis," World Scientific Book Chapters, in: Lecture Notes in Behavioral Finance, chapter 3, pages 39-58, World Scientific Publishing Co. Pte. Ltd..
  • Handle: RePEc:wsi:wschap:9789813231573_0003
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