Modern portfolio theory (MPT) and behavioral finance represent differing schools of thought that attempt to explain investor behavior. Perhaps the easiest way to think about their arguments and ...

(See “Daniel Kahneman: The Thought Leader Interview,” by Michael Schrage, s+b, Winter 2003.) The application of behavioral finance theory to corporate finance is now attracting the attention of a ...

Thaler graduated from writing a regular column and went on to write books. The book that put him in the ... that focuses specifically on behavioral finance and investment management, an application ...

We observe their behavior and we mimic that behavior. In short, we do what they do. This theory is also known as social cognitive theory. Social learning theory, developed by psychologist Albert ...