Modern portfolio theory (MPT) and behavioral finance represent differing schools of thought that attempt to explain investor behavior. Perhaps the easiest way to think about their arguments and ...

We observe their behavior and we mimic that behavior. In short, we do what they do. This theory is also known as social cognitive theory. Social learning theory, developed by psychologist Albert ...

(See “Daniel Kahneman: The Thought Leader Interview,” by Michael Schrage, s+b, Winter 2003.) The application of behavioral finance theory to corporate finance is now attracting the attention of a ...

Prospect theory and other work by Tversky and Kahneman continues to inform many areas of behavioral economics research today. What role have Richard Thaler and behavioral economists at the University ...

This theory has been increasingly applied to travel choice behavior, particularly in the context of how individuals respond to various travel scenarios, such as congestion charges, travel mode ...