Behavioral finance studies the application of psychology to finance, with a focus on
individual-level cognitive biases. I describe here the sources of judgment and decision …

Behavioral finance tries to make sense of financial data using models that are based on
psychologically accurate assumptions about people's beliefs, preferences, and cognitive …

We present a new model of asset prices in which investors evaluate risk according to
prospect theory and examine its ability to explain 23 prominent stock market anomalies. The …

Inspired by the recent health science findings that air pollution affects mental health and
cognition, we examine whether air pollution can intensify the cognitive bias observed in the …

Investors' previous experiences with a stock affect their willingness to repurchase that stock.
Using detailed trade data from two brokers, the authors document that investors are reluctant …

Purpose–The purpose of this paper is to critically review the literature on contrarian and
momentum trading strategies and identify areas for future research. Design/methodology …

We investigate the predictive power of market volatility for momentum. We find that (1)
market volatility has significant power to forecast momentum payoffs, which is robust after …

Previous empirical studies find that lottery-like stocks significantly underperform their non-
lottery-like counterparts. Using five different measures of the lottery features in the literature …

There has been recent debate about whether prospect theory can explain the disposition
effect. Using both theory and simulation, this paper shows that prospect theory often predicts …

We investigate whether automatic selling devices causally reduce investors' disposition
effect (DE) in a laboratory experiment. Investors can actively buy and sell assets. Investors in …