Behavioral finance FAQ / Glossary (Behavioral financial analysis)

This is a separate page of the B section of the Glossary

	Dates of related message(s) in the Behavioral-Finance group (*): Year/month, d: developed / discussed, i: incidental
Behavioral asset pricing model (BAP)	See below behavioral financial analysis + see image coefficient
Behavioral biases in finance / economics	This article has its own page
Behavioral finance (BF)	This article has its own page

Behavioral financial analysis (BA, BFA)

See image coefficient, behavioral finance, over- / under-reaction, valuation, debiasing

The fourth side of the market analysis magical (?) square. Definition The human side of prices. BFA / Behavioral financial analysis is a set of techniques that try to estimate future asset prices or trends by using behavioral finance findings (see behavioral finance). One of the weaknesses of Behavioral finance is that instead of creating its own analysis models, it often refers to "anomalies", as discrepancies spotted when comparing prices and returns to those found in standard pricing models. Tools Your honor, the accusation above against Behavioral finance is not fully true it does not always steal weapons from the other gang, it also makes its own! There are at least three known Behavioral analysis / Behavioral valuation tools that has been found useful in finance (see the related pages in this glossary): 1) The detection of under-reactions / over-reactions to events, so as to spot price trends. 2) Shefrin's debiasing / rebiasing process 3) The image coefficient, that helps to estimate potential prices (behavioral valuation), BFA is the fourth side of the "stock analysis square". The three others are fundamental analysis, technical analysis and quantitative analysis (see those words). There is no "string theory" to unite those four types of analyses. It is true that they have at least as many points of contradiction than of convergence.

Behavioral (market) parameters	00/9i + see above behavioral analysis + see image coefficient
Behavioral market parameters are linked to the incidences of investor behaviors and include levels and changes of * Prices, * Returns, * Volumes, * Volatility. One example is the stock image coefficient, another is trend persistence (Hurst coefficient).
Behavioral portfolio theory (BPT)	02/11i + see above behavioral analysis + see image coefficient

Behavioral pricing	07/4 + see above behavioral analysis + see image coefficient
Priced according to your tastes (and your pockets). Definition Behavioral pricing is a phrase that defines usually a marketing technique that adapts the prices of goods and services to customer preferences (and to their purchasing power). The phrase can be extended to financial assets, with the sense of behavioral valuation(see behavioral analysis).
Behavioral stock pricing model (BSPM), Behavioral valuation	See above: behavioral analysis + see image coefficient

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