Behavioral Finance is a field of behavioral economics that tries to understand limits of human rationality and how this leads to what SOME consider irrational behavior. We look further at how decisions are actually made (including neuroscience) and investigate how this knowledge can help us in our financial as well as life decisions.
Why study behavioral finance/Economics? Here is a list that I made for my class a couple of years ago. It still works:
This serves as an introduction to my classes when we do behavioral finance.Edit Remove Move
This is excellent. You may have seen it before, but it is worth rewatching. I use it in many of my classes and it never ceases to impress me. Dan is great. "Dan Ariely, a professor of behavioral economics at Duke University, presents examples of cognitive illusions that help illustrate why humans make predictably irrational decisions. "Edit Remove Move
LOVE IT! Paul Craven does a seriously a great job. WATCH IT! Entertaining and informative. Will pique your interest in the field. My new favorite! Paul Craven - Behavioural Finance - From Biases to Bubbles - Nudgestock 24 May 2013Edit Remove Move
BuffettMungerWisdom: http://buffettmungerwisdom.wordpress.com "Influence: The Psychology of Persuasion by Rober Cialdini" http://amzn.to/WgcAuo "Poor Charlie's Almanack Expanded Third Edition" http://amzn.to/13szxgn Audio of the often referred to speech by Charlie Munger on the psychology of human misjudgement given to an audience at Harvard University circa Jun 1995.Edit Remove Move