- Hardcover: 224 pages
- Publisher: Oxford University Press (Mar 15 2000)
- Language: English
- ISBN-10: 0198292287
- ISBN-13: 978-0198292289
- Product Dimensions: 14 x 21.6 x 1.7 cm
- Shipping Weight: 408 g
- Average Customer Review: 3.8 out of 5 stars See all reviews (5 customer reviews)
- Amazon Bestsellers Rank: #1,814,449 in Books (See Top 100 in Books)
- See Complete Table of Contents
|
||||||||||||||||||
|
||||||||||||||||||
|
||||||||||||||||||
| |||||||||||||||
Product Details |
Product Description
Review
"An excellent academic discussion of [stock mispricing] and other behavioral influences in the stock market."--Jeff Madrick, New York Review of Books
"The only advanced undergraduate or graduate text available on the subject."--Jeffrey Wurgler, Yale School of Management
Book Description
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.
Inside This Book
(Learn More)
Tag this product(What's this?)Think of a tag as a keyword or label you consider is strongly related to this product.
Tags will help all customers organize and find favorite items. |
Customer Reviews
|
Share your thoughts with other customers:
|
||||||||||||||||||||||
|
Most helpful customer reviews
3.0 out of 5 stars
Arguments for economists talking to economists,
By
This review is from: Inefficient Markets: An Introduction to Behavioral Finance (Paperback)
I found this less interesting than I had hoped. It seemed written for economists, not the intelligent reading public. The book spends little time introducing accessible economic puzzles that might interest the general reader. Instead, it spends its time refuting established economic principles using vocabulary and phrases from economic academia.I wish the book had proposed some alternative economic principles to replace those the author attacks. I don't quibble with the arguments, they just didn't have much impact. For a better intro to behavioral finance, try Thaler's 'The Winner's Curse.' For something more positive, check out 'The Economy as an Evolving Complex System.'
4.0 out of 5 stars
A good intro to Behavioral Finance,
By
This review is from: Inefficient Markets: An Introduction to Behavioral Finance (Paperback)
Markets are not efficient in part because Investor Sentiment is a strong factor creating momentum (either upward or downward trend, whether sentiment is positive or negative). Also, arbitrage is very weak, as there are no proper securities substitutes, shorting the indexes is too risky. The "Noise Trader Risk" is too great. Meaning equity values may continue to diverge long enough for the arbitrageurs to loose their shirt betting on convergence. The investor type is a very important characteristic to factor. This explains the close end fund puzzle. The discount on closed end fund tracks the fate of small cap stocks. When small cap stocks do poorly, the discount on closed end funds deepens. This is because both investments are dominated by the same type of investors: individuals - small investors. Thus, both investment types are subject to small investors' sentiments.
5.0 out of 5 stars
Important Counterpoint,
By A Customer
This review is from: Inefficient Markets: An Introduction to Behavioral Finance (Paperback)
I want to believe in efficient markets, and perhaps the markets are effiecient in the long run, but in the short run, they can be very ineffiecient. In the US treasury market where prices are posted and transparent and pricing is well-understood, the markets appear to behave efficiently, but even these markets experience distortions and manipulation. In the exponentially growing credit derivatives market, the market appears very inefficient. Information on documentation and pricing is not at all transparent, and information requires time and work to obtain. In a paradigm shift, it has become a very important product in a very short time, and the market in these products is inefficient, and some of that is due to exogenous variables delibertately introduced by the people who trade the market. That type of structural risk is not addressed in this book.
Share your thoughts with other customers: Create your own review
Want to see more reviews on this item?
|
Most recent customer reviews |
Listmania!
Look for similar items by category
- Books > Business & Investing > Economics > Theory
- Books > Business & Investing > Investing > Stocks
- Books > Business & Investing > Popular Economics
- Books > Nonfiction > Economics > Theory
- Books > Professional & Technical > Accounting & Finance > Economics > Theory
- Books > Professional & Technical > Accounting & Finance > Finance
Look for similar items by subject
Feedback
Would you like to update product info or give feedback on images?
|
