# Behavioral finance

2022 [video - Cognitum S2 Episode 4 // Revolutions of Finance](https://www.youtube.com/watch?v=fSnVHZ5OtvM&list=WL&index=9)⏎

## Kahneman

- [**Prospect theory**](https://knowen-production.s3.amazonaws.com/uploads/attachment/file/717/kahneman_docs_Publications_prospect_theory.pdf)

- [Human decision under risk and uncertainty have various biases and heuristics.](https://www2.psych.ubc.ca/~schaller/Psyc590Readings/TverskyKahneman1974.pdf) Influential work by Daniel Kahneman.

Value and decision weights are assigned to gains and losses rather to the assets as in expected utility function theory.
Practical applications allow to understand the attractiveness of gambling and insurance.

- [Timid Choices and Bold Forecasts: A Cognitive Perspective on Risk Taking](https://knowen-production.s3.amazonaws.com/uploads/attachment/file/2003/TimidChoicesAndBoldForecasts-%2BKahneman.pdf)

outside view and biases

- [Daniel Kahneman on Cutting Through the Noise (Ep. 56— Live at Mason)](https://medium.com/conversations-with-tyler/tyler-cowen-daniel-kahneman-economics-bias-noise-167275de691f)

## [Richard Thaler](https://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/2017/press.html)

- see also [Practical Nobels in Economics](/nodes/24305)

- Behavioral economics[[Wiki]]

## Ben Hunt - Common Knowledge Game

- illusions [Gell-Mann Amnesia](https://www.epsilontheory.com/gell-mann-amnesia/)



NB: to be reviewed by an expert


# Parents

* Finance

# References

* Wiki: [Behavioral on Wiki](https://en.wikipedia.org/wiki/Behavioral_economics#Behavioral_finance)

# Attachments

* [](https://knowen-production.s3.amazonaws.com/uploads/attachment/file/717/kahneman_docs_Publications_prospect_theory.pdf)
* [](https://knowen-production.s3.amazonaws.com/uploads/attachment/file/2003/TimidChoicesAndBoldForecasts-%2BKahneman.pdf)