Behavioural finance: related pages

Game Theory
A mathematical framework for analysing what choices rational individuals will make, when the pay-offs depend on the combination of all player's choices.
Bubble
Security prices far above the levels which can be justified by any rational assessment of the real value of future cash flows. Bubbles inevitably burst.
Greater fool
Buying an over-priced investment, especially during a bubble, expecting that it will be possible to sell at a profit to a “greater fool”.
Efficient markets
A market in which securities prices reflect all available information.
Risk aversion
The preference of investors for the less risky of investments with identical expected returns.
Technical analysis
A user of technical analysis, investing on the basis of share price movements rather than fundamentals.
Winner's curse
The tendency for winning bidders (in an auction) to over-pay.
Quantitative finance
The application of sophisticated maths to finance.
Copyright Graeme Pietersz © 2005-2019