A Theory of Behavioral Finance – Predictions

Posted by Jason Apollo Voss on Dec 22, 2020 in Behavioral Bias Deep Dive, Blog | 0 comments A little over six weeks ago I published A Theory of Behavioral Finance. Subsequently, I have been considering each of the high level points of the Theory in greater detail in individual articles. Today’s article about the Predictions of a Theory of Behavioral Finance concludes this series. I am combining these pieces into a larger whitepaper that is soon to be available for download. In the...
read more

A Theory of Behavioral Finance – Assumptions 5 and 6 – Final Factors

Posted by Jason Apollo Voss on Dec 15, 2020 in Behavioral Bias Deep Dive, Blog | 0 comments A little while ago I published A Theory of Behavioral Finance, and subsequently I have been exploring each of my assumptions in greater detail. Of those foundations the first four deserved entire articles. Whereas assumptions 5 and 6 can be combined into a single piece. Next week I conclude the whole enterprise (just in time for the Holy Days) by exploring the predictions that may be made based...
read more

A Theory of Behavioral Finance – Assumption 4 – Sociological Factors

Posted by Jason Apollo Voss on Dec 9, 2020 in Behavioral Bias Deep Dive, Blog | 0 comments Over the last several weeks we have been exploring A Theory of Behavioral Finance. So, far I have provided a high-level overview of the theory, as well as a discussion of two of the parents of behavioral bias: biology and psychology. In this article I discuss the sociological factors that lead to our errors in judgement. For convenience, here are the sociological factors that I outlined...
read more

A Theory of Behavioral Finance – Assumption 3 – The Psychological Factors

Posted by Jason Apollo Voss on Dec 1, 2020 in Behavioral Bias Deep Dive, Blog | 0 comments Several weeks ago I authored A Theory of Behavioral Finance, which was a high-level presentation of the Theory. I promised to cover each assumption more in-depth. This week I describe in greater detail the Psychological Factors that contribute to behavioral biases. In that original piece I said these factors included: Psychological secondary factors affecting human behavior include: Behaviors...
read more

A Theory of Behavioral Finance – Assumption 2 – The Biological Factors

Posted by Jason Apollo Voss on Nov 24, 2020 in Behavioral Bias Deep Dive, Blog | 0 comments For those of you stumbling on this article it is a part of a matrix of pieces making a case for A Theory of Behavioral Finance. This work before you specifically explores with some depth the biological factors that contribute to the arising of behavioral biases. In my theory I said of Assumption 2, biological factors: Biological secondary factors affecting human behavior include: Human biology...
read more

A Theory of Behavioral Finance – Assumption 1 – A Combination of Factors

Posted by Jason Apollo Voss on Nov 17, 2020 in Behavioral Bias Deep Dive, Blog | 0 comments Last week I published A THEORY OF BEHAVIORAL FINANCE which was a high-level description of my theory. In that work I promised to explore each of my assumptions in greater depth. This week, therefore, I deepen the discussion around Assumption 1 that posited: Human behavior is a complex combination of multiple factors that must be considered in total to glean insight, these primary factors are:...
read more

Behavioral Finance – Bias Deep Dive: Mental Accounting

Posted by Jason Apollo Voss on Sep 22, 2020 in Behavioral Bias Deep Dive, Blog | 0 comments Last up in this series of deep dive articles on behavioral finance is mental accounting. Very generically, the bias describes some of the errors in judgment that occur when investors contextualize information. In this way it is similar to some of the other biases I have covered where improper context is the root cause of distorted thinking (e.g. Anchoring, Availability, and Representativeness)....
read more