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The concept of behavioral finance emerged from the studies of Tversky and Kahneman (1974).At that time, the expected utility theory and efficient market hypothesis predominated in financial and economic theories, wherein individuals would make strictly rational decisions and maximize the usefulness of each decision (Barberis & Thaler, 2003).
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The concept of behavioral finance emerged from the studies of Tversky and Kahneman (1974).At that time, the expected utility theory and efficient market hypothesis predominated in financial and economic theories, wherein individuals would make strictly rational decisions and maximize the usefulness of each decision (Barberis & Thaler, 2003).