Steinbacher, Matjaz (2008): Stochastic Processes in Finance and Behavioral Finance. Published in: Icfai Journal of Behavioral Finance , Vol. 8, No. 4 : pp. 630.
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Abstract
In the paper, we put some foundations for studying asset pricing and finance as a stochastic and behavioral process. In such process, preferences and psychology of agents represent the most important factor in the decisionmaking of people. Individuals have their own ways of acquiring the information they need, how to deal with them and how to make predictions and decisions. People usually also do not behave consistent in time, but learn. Therefore, in order to understand the behavior on the markets, a new paradigm is needed.
Item Type:  MPRA Paper 

Original Title:  Stochastic Processes in Finance and Behavioral Finance 
Language:  English 
Keywords:  behavioral finance, stochastic finance 
Subjects:  G  Financial Economics > G1  General Financial Markets > G14  Information and Market Efficiency ; Event Studies ; Insider Trading D  Microeconomics > D8  Information, Knowledge, and Uncertainty > D81  Criteria for DecisionMaking under Risk and Uncertainty D  Microeconomics > D8  Information, Knowledge, and Uncertainty > D83  Search ; Learning ; Information and Knowledge ; Communication ; Belief ; Unawareness 
Item ID:  13647 
Depositing User:  Matjaz Steinbacher 
Date Deposited:  27 Feb 2009 07:21 
Last Modified:  26 Sep 2019 13:31 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/13647 
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Stochastic Processes in Finance and Behavioral Finance. (deposited 24 Feb 2009 15:38)
 Stochastic Processes in Finance and Behavioral Finance. (deposited 27 Feb 2009 07:21) [Currently Displayed]