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Neurofinance

In: Handbook of Financial Decision Making

Author

Listed:
  • Elise Payzan-LeNestour

Abstract

A nascent field combining theory and methodology from neuroscience and finance, neurofinance takes what we know at the neurobiological level and applies it to investor decision-making. It aims to propose new theories about investor behavior and to test existing theories that are difficult to test with behavioral data alone but can however be tested with a combination of behavioral and neural data. The path taken in recent research has uncovered neurobiological foundations for well-known anomalies in investor behavior, revealing enticing opportunities for improving investor decision-making in the future.

Suggested Citation

  • Elise Payzan-LeNestour, 2023. "Neurofinance," Chapters, in: Gilles Hilary & David McLean (ed.), Handbook of Financial Decision Making, chapter 4, pages 91-110, Edward Elgar Publishing.
  • Handle: RePEc:elg:eechap:21126_4
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    File URL: https://www.elgaronline.com/doi/10.4337/9781802204179.00013
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