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Behavioural Financial Regulation and Policy (BEFAIRLY) series: The Behavioural Finance Revolution

A New Approach to Financial Policies and Regulations

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Financial markets are intricate systems where regulators aim to foresee potential malfunctions and establish preventive rules. However, the influence of behavioral factors is frequently neglected. This work delves into the synergy between behavioral finance and traditional methodologies, aiding banks and regulators in formulating improved policies. It highlights how the behavioral finance movement fosters a more holistic approach to understanding economic phenomena. The text promotes a forward-thinking agenda that incorporates behavioral science into current practices, emphasizing the importance of fairness in financial markets for enhancing societal well-being. It investigates how concepts like bounded rationality, heuristic decision-making, loss aversion, endowment effects, and social preferences can shape financial choices, revealing the limitations of conventional forecasting methods that oversimplify individual behavior. Featuring insights from both scholars and industry professionals, this book is essential for researchers in finance and behavioral economics. Regulators interested in implementing behavioral policymaking will also find it invaluable.

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Behavioural Financial Regulation and Policy (BEFAIRLY) series: The Behavioural Finance Revolution, Riccardo Viale, Shabnam Mousavi, Barbara Alemanni, Umberto Filotto

Langue
Année de publication
2018
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Titre
Behavioural Financial Regulation and Policy (BEFAIRLY) series: The Behavioural Finance Revolution
Sous-titre
A New Approach to Financial Policies and Regulations
Langue
Anglais
Publié
2018
Format
rigide
Pages
272
ISBN10
1788973054
ISBN13
9781788973052
Séries
Description
Financial markets are intricate systems where regulators aim to foresee potential malfunctions and establish preventive rules. However, the influence of behavioral factors is frequently neglected. This work delves into the synergy between behavioral finance and traditional methodologies, aiding banks and regulators in formulating improved policies. It highlights how the behavioral finance movement fosters a more holistic approach to understanding economic phenomena. The text promotes a forward-thinking agenda that incorporates behavioral science into current practices, emphasizing the importance of fairness in financial markets for enhancing societal well-being. It investigates how concepts like bounded rationality, heuristic decision-making, loss aversion, endowment effects, and social preferences can shape financial choices, revealing the limitations of conventional forecasting methods that oversimplify individual behavior. Featuring insights from both scholars and industry professionals, this book is essential for researchers in finance and behavioral economics. Regulators interested in implementing behavioral policymaking will also find it invaluable.