A fast and frugal finance bridging contemporary behavioural finance and ecological rationality

A Fast and Frugal Finance: Bridging Contemporary Behavioural Finance and Ecological Rationality adds psychological reality to classical financial reasoning. It shows how financial professionals can reach better and quicker decisions using the 'fast and frugal' framework for decision-making...

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Bibliographic Details
Main Authors: Forbes, William, Igboekwu, Aloysius Obinna (Author), Modarres-Mousavi, Shabnam (Author)
Format: eBook
Language:English
Published: London, United Kingdom Academic Press 2020
Series:Perspectives in behavioral economics and the economics of behavior
Subjects:
Online Access:
Collection: O'Reilly - Collection details see MPG.ReNa
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505 0 |a Includes bibliographical references and index 
505 0 |a Section l : Fast-and-Frugal Approach to Finance -- 1. Introduction -- 2. Fast-and-Frugal Heuristics -- 3. Adaptive or Efficient Financial Markets? -- 4. Financial Regulations and Heuristics -- 5. When Fast-and-Frugal Works Best -- Section II : Applications of Fast-and-Frugal Finance -- 6. Fast-and-Frugal Asset Pricing -- 7. Fast-and-Frugal Portfolio Theory -- 8. Fast-and-Frugal Financial Analysis -- 9. Inference Under the Law of Small Numbers: Earnings Streaks Rather Than Earning Numbers -- 10. A Fast-and-Frugal Finance 
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520 |a A Fast and Frugal Finance: Bridging Contemporary Behavioural Finance and Ecological Rationality adds psychological reality to classical financial reasoning. It shows how financial professionals can reach better and quicker decisions using the 'fast and frugal' framework for decision-making, adding dramatically to time and outcome efficiency, while also retaining accuracy. The book provides the reader with an adaptive toolbox of heuristic tools and classification systems to aid real-world decisions. Throughout, financial applications are presented alongside real-world examples to help readers solve established problems in finance, including stock buying and selling decisions, when faced with not only risk but fundamental uncertainty. The book concludes by describing potential solutions to financial problems in the forefront of contemporary debates, and calls for taking psychological insights seriously. Demonstrates how well-constructed 'fast and frugal' models can outperform standard models in time and outcome efficiency Focuses on how financial decisions are made in reality, using heuristics, rather than how such decisions should be made Discusses how cognition and the decision-making context interact in producing 'fast and frugal' choices that follow ecological rationality Explores the development of decision-making trees in finance to aid in decision-making