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Essays on behavioral finance

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  • Neszveda, G.

    (Tilburg University, School of Economics and Management)

Abstract

Despite the fact that almost everyone faces risk in their lives and it is a crucial ingredient in economic models including asset pricing models, it is still an open debate how decision-makers or even investors evaluate risk. Experimental and empirical evidence shows that the standard expected utility theory falls short of explaining many economic and asset pricing phenomena. Behavioral finance provides alternative conceptual frameworks to explain these phenomena. This dissertation consists of 3 chapters investigating the impacts of some of the conceptual frameworks in behavioral finance. Chapter 1 investigates the potential impact of the expected utility theory with an aspiration level on stock returns. Chapter 2 investigates the impact of the law of small numbers on stock returns. Chapter 3 investigates the relation between time discounting and risk taking in an experiment.

Suggested Citation

  • Neszveda, G., 2019. "Essays on behavioral finance," Other publications TiSEM 05059039-5236-42a3-be1b-3, Tilburg University, School of Economics and Management.
  • Handle: RePEc:tiu:tiutis:05059039-5236-42a3-be1b-3c1be952551b
    Note: Dissertation
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    File URL: https://pure.uvt.nl/ws/portalfiles/portal/31222913/Thesis_manuscript_final.pdf
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    References listed on IDEAS

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