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Biology-induced effects on investor psychology and behavior

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  • Murphy, Austin

Abstract

This research utilizes the most recent research in psychology to analyze the innate causes of financial cycles within the context of applied financial theory. Such cycles are shown to be consistent with both human biology and efficient markets, but the brain states induced by biological chemicals produced internally are also explained to potentially contribute to mispricing in inefficient markets.

Suggested Citation

  • Murphy, Austin, 2012. "Biology-induced effects on investor psychology and behavior," International Review of Financial Analysis, Elsevier, vol. 24(C), pages 20-25.
    • Handle: RePEc:eee:finana:v:24:y:2012:i:c:p:20-25
    DOI: 10.1016/j.irfa.2012.07.001
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    Cited by:

    1. Zamri Ahmad & Haslindar Ibrahim & Jasman Tuyon, 2017. "Institutional investor behavioral biases: syntheses of theory and evidence," Management Research Review, Emerald Group Publishing Limited, vol. 40(5), pages 578-603, May.

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    More about this item

    Keywords

    Financial cycle; Psychology; Efficient market; Technical analysis;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets

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