- The second edition continues the tradition of the first edition by being the one and only book to focus completely on how behavioral finance principles affect asset pricing, now with its theory deepened and enriched by a plethora of research since the first edition
Please Note: This is an On Demand product, delivery may take up to 11 working days after payment has been received.
I Heuristics and Representativeness: Experimental Evidence 2. Representativeness and Bayes Rule: Psychological Perspective 3. Representativeness and Bayes Rule: Economics Perspective 4. A Simple Asset Pricing Model Featuring Representativeness 5. Heterogeneous Judgements in Experiments
II Heuristics and Representativeness: Investor Expectations 6. Representativeness and Heterogeneous Beliefs Among Individual Investors, Financial Executives, and Academics 7. Representativeness and Heterogeneity in the Judgements of Professional Investors
III Developing Behavioral Asset Pricing Models 8. A Simple Asset Pricing Model with Heterogeneous Beliefs 9. Heterogeneous Beliefs and Inefficient Markets 10. A Simple Market Model of Prices and Trading Volume 11. Efficiency and Entropy: Long-run Dynamics
IV Heterogeneity in Risk Tolerance and Time Discounting 12. CRRA and CARA Utility Functions 13. Heterogeneous Risk Tolerance and Time Preference 14. Representative Investors in a Heterogeneous CRRA Model
IV Sentiment and Behavioral SDF 15. Sentiment 16. Behavioral SDF and the Sentiment Premium
VI Applications and Behavioral SDF 17. Behavioral Betas and Mean-Variance Portfolios 18. Cross-section of Return Expectations 19. Testing for a Sentiment Premium 20. A Behavioral Approach to the Term Structure of Interest Rates 21. Behavioral Black-Scholes 22. Irrational Exuberance and Option Smiles 23. Empirical Evidence in Support of Behavioral SDF
VII Prospect Theory 24. Prospect Theory: Introduction 25. Behavioral Portfolios 26. Equilibrium with Behavioral Preferences 27. Pricing and Prospect Theory: Empirical Studies 28. Reflections on the Equity Premium Puzzle 29. Continuous Time Behavioral Equilibrium Models 30. Conclusion
Hersh Shefrin holds the Mario L. Belotti Chair in the Department of Finance at Santa Clara University's Leavey School of Business. He is a pioneer of behavioral finance, and has worked on behavioral issues for over thirty years. A Behavioral Approach to Asset Pricing is the first behavioral treatment of the pricing kernel. His book Behavioral Corporate Finance is the first textbook dedicated to the application of behavioral concepts to corporate finance. His book Beyond Greed and Fear was the first comprehensive treatment of the field of behavioral finance. A 2003 article appearing in The American Economic Review included him among the top fifteen theorists to have influenced empirical work in microeonomics. One of his articles is among the all time top ten papers to be downloaded from SSRN. He holds a Ph.D. from the London School of Economics, and an honorary doctorate from the University of Oulu in Finland.