Inefficient Markets: An Introduction to Behavioral Finance (Clarendon Lectures in Economics) von Andrei Shleifer stock mispricing behavioral influences in the stock market efficient markets hypothesis securities prices in financial markets must equal fundamental values investors are rational arbitrage eliminates pricing anomalies financial markets behavioral finance assumptions of investor rationality and perfect arbitrage are overwhelmingly contradicted by both psychological and institutional evidence

Andrei Shleifer

ISBN 10: 0198292279 / ISBN 13: 9780198292272

Verlag: Oxford University Press, 2000

Beschreibung

"Inefficient Markets" is the most thoughtful original treatment of behavioral finance I have found. Unlike most other books on this topic, which either are vapidly light but original or are intellectually rewarding but disjointed compendiums of previously published articles, Shleifer has produced an interesting and intelligent synthesis of behavioral finance. He organizes his materially logically and clearly, covering the central themes of behavioral finance in as unified a manner as the subject permits. He has clearly thought hard about the subject matter, and his book reflects this. Shleifer's writing style is both lucid and academically rigorous, which makes for an enjoyable and informative book. Shleifer begins by reviewing the theoretical and empirical foundations of the efficient market hypothesis (EMH) and introducing the principal challenges to this hypothesis. His review of the EMH is careful, objective, and respectful. His introduction to the principal challenges to the EMH is written with equal integrity, and his analysis of these challenges is non-dogmatic and relatively conservative. He carefully avoids overstating the conclusions of the academic research. While Shleifer clearly feels that financial markets are NOT efficient, as an academic he also acknowledges the inability of empirical research to PROVE with certainty that financial markets are or are not efficient. It is his careful interpretation of the evidence on both sides of the EMH fence that gives this book its tremendous credibility. The majority of "Inefficient Markets" covers the two principal building blocks of behavioral finance: the theory of limited arbitrage and the theory of investor sentiment. Shleifer demonstrates that arbitrage is of limited usefulness in relatively competitive markets, much less in more complicated environments, and that financial markets should not be presumed efficient. He then presents a model of investor sentiment that incorporates the results of experimental research into individual decision-making under conditions of uncertainty. Shleifer also provides an extremely clear overview of the DeLong et al. noise trader model, and concludes the book by highlighting some of the unsolved problems in financial economics. It should be noted, if it is not already clear, that this book is intended for PhD and advanced MBA students (in fact, the book is a core text for the University of Chicago's PhD course in Behavioral Finance). The analysis in the book is both theoretical and rigorous. Nonetheless, the intellectually curious reader with a basic exposure to microeconomics and/or financial economics will find the book rewarding. You are guaranteed to come away from this book knowing more about that opportunities and challenges facing the field of behavioral finance. For practitioners, or anyone looking for a more general/popular treatment of behavioral finance, I recommend "Beyond Greed and Fear" by Hersh Shefrin. Inefficient MarketsAn Introduction to Behavioral Finance Clarendon Lectures in Economics Andrei Shleifer Investments & Securities Finance Business Economics Theory returns on stocks Oxford University Press microeconomics ISBN 978-0198292272 9780198292272 Inefficient Markets: An Introduction to Behavioral Finance (Clarendon Lectures in Economics) von Andrei Shleifer stock mispricing behavioral influences in the stock market efficient markets hypothesis securities prices in financial markets must equal fundamental values investors are rational arbitrage eliminates pricing anomalies financial markets behavioral finance assumptions of investor rationality and perfect arbitrage are overwhelmingly contradicted by both psychological and institutional evidence In englischer Sprache. 224 pages. 21,4 x 13,2 x 1,4 cm. Bestandsnummer des Verkäufers BN5567

Bibliografische Details

Titel: Inefficient Markets: An Introduction to ...

Verlag: Oxford University Press

Erscheinungsdatum: 2000

Einband: Softcover

Zustand: gut

Auflage: 2000.

Über diesen Titel

Inhaltsangabe:

The efficient markets hypothesis has been the central proposition in finance for nearly thirty years. It states that securities prices in financial markets must equal fundamental values, either because all investors are rational or because arbitrage eliminates pricing anomalies.

This book describes an alternative approach to the study of financial markets: behavioral finance. This approach starts with an observation that the assumptions of investor rationality and perfect arbitrage are overwhelmingly contradicted by both psychological and institutional evidence. In actual financial markets, less than fully rational investors trade against arbitrageurs whose resources are limited by risk aversion, short horizons, and agency problems. The book presents and empirically evaluates models of such inefficient markets.

Behavioral finance models both explain the available financial data better than does the efficient markets hypothesis and generate new empirical predictions. These models can account for such anomalies as the superior performance of value stocks, the closed end fund puzzle, the high returns on stocks included in market indices, the persistence of stock price bubbles, and even the collapse of several well-known hedge funds in 1998. By summarizing and expanding the research in behavioral finance, the book builds a new theoretical and empirical foundation for the economic analysis of real-world markets.

Über die Autorin bzw. den Autor:

Andrei Shleifer is Professor of Economics at Harvard University