When it comes to financial affairs, there are two schools of thought: Traditional financial theory and behavioral finance. Traditional financial theory assumes that people make decisions by gathering ...

Discover Hotelling's Theory, which explains how owners of nonrenewable resources decide whether to extract and sell based on future price predictions and interest rates.

My earliest work in the field of behavioral finance in the late 1990s examined the correlations between investor behavior biases and the Myers-Briggs Type Indicator, or MBTI. I found some ...

Robert Shiller, a professor of economics at Yale University, made a prediction in 2005 that a massive bubble was developing in the housing market, and was proved right just two years later, it seemed ...

Investing in the financial markets is a complex endeavor influenced not only by economic factors and market dynamics but also by human behavior. Traditional finance theory assumes that investors make ...

A bird in the hand is worth two in the bush.[1] In investing, this describes investors’ preference for dividends (the bird in the hand) relative to future price appreciation (two in the bush). While ...

Forbes contributors publish independent expert analyses and insights. Tim Maurer covers how personal finance is more personal than finance. Aug 22, 2021, 07:00am EDT Aug 23, 2021, 10:40am EDT This ...

Behavioral Finance is the application of psychology to finance and investing. It has produced deep insights into how investors think and behave as well as how financial markets behave. Learn more ...

Explore how the diffusion of innovations theory aids in developing marketing strategies for new products and increasing market share through five key steps.