Quantitative behavioral finance

Quantitative behavioral finance is a new discipline that uses mathematical and statistical methodology to understand behavioral biases in conjunction with valuation.

The research can be grouped into the following areas:

  1. Empirical studies that demonstrate significant deviations from classical theories.
  2. Modeling using the concepts of behavioral effects together with the non-classical assumption of the finiteness of assets.
  3. Forecasting based on these methods.
  4. Studies of experimental asset markets and use of models to forecast experiments.