Behavioral finance FAQ / Glossary / Encyclopedia

(Full alphabetical table of articles)
For access to an article click the letter link in the related box.

A

* Accumulation / Distribution

* Active / passive investing

* Adaptation / Adaptable / Adaptive (system, economics, market)

* Addiction

* (under / slow) Adjustment

* Administration / administrative behavior

* Affect, affect heuristic

* (principal-) Agent / Agency theory

* Agent-based model

* Algorithmic trading

* Alpha coefficient (excess / insufficient return)

* Alternation (of trends)

* Altruism

* Ambiguity aversion, ambiguity premium

* (mental) Anchor / Anchoring

* (market) Anomaly

* Anticipation

* APT

* ARCH / GARCH models

* Arbitrage opportunity (absence of / limited)

* Arbitrage pricing theory (APT)

* Archetype (stock, trader)

* Aristotle's bias

* Artificial Intelligence (AI)

* Asymmetry / skew

* Attachment bias

* Attention anomaly, bias, disorder

* (common) Attitude

* Attractor

* Attribution bias / error

* Automaticity, autopilot bias

* Availability bias, availability heuristics

* (disappointment, loss, risk, regret, uncertainty... ) Averse, Aversion

* Aversion, disposition and prospects

 

B

* BA

* Bandwagon effect

* BAPM

* Base rate fallacy / neglect

* Bayes, Bayesian probabilities, learning

* Bear / bearish / bearishness

* Beauty contest

* (human) Behavior

* Behavioral analysis (BA - BFA)

* Behavioral asset pricing model (BAPM)

* Behavioral biases in finance / economics / management

* Behavioral corporate management

* Behavioral economics

* Behavioral finance (BF)

* Behavioral financial analysis (BA - BFA)

* Behavioral parameters

* Behavioral portfolio theory (BPT)

* Behavioral pricing

* Behavioral public economics / finance

* Behavioral stock pricing model (BSPM), Behavioral valuation

* Behavioralist

* (common) Belief

* Benchmark game

* Bet, betting odds

* Beta coefficient

* BF

* Bias / Biases

* Bias for action

* (critical) Bifurcation

* Binary logic

* (economic, financial) Boom, Boom & Bust

* Bounded rationality

* Boredom (as a motivation to act)

* Brain (circuits, wiring, areas...)

* (speculative) Bubble / Crash

* Bull / bullish / bullishness

* Buy and hold

* Buzz

 

C

* Calendar effect

* Capitulation

* CAPM / Capital Assets Pricing Model

* (Information) Cascade, cascading

* Certainty effect

* Chart, Chartism, Chartist

* Chaos theory / chaos-determinist walk<

* Cheating

* Choice

* Closed-end fund discount

* (price, volatility) Cluster / Clustering

* Cluster illusion

* Cobweb effect

* Cognition

* Cognitive asymmetry

* Cognitive bias / distortion / flaw

* Cognitive consonance / dissonance

* Cognitive manipulation

* Cognitive psychology

* Cognitive trap

* Cognitive overload

* Collective bias / cognition / psychology

* Collusion

* Commitment effect

* Common Belief /Convention / Knowledge / Paradigm

* Common Good

* Compartmentalization

* Competence effect (aka illusion of competence)

* Competition - cooperation

* Complacency

* Complex system, Complexity theory

* Compulsion / ive

* Computer-driven trading

* Confidence

* (pressure to) Conform, Conformity

* Confirmatory / confirmation bias

* (mental) Confusion

* Congestion

* Consensus

* Conservatism bias

* Consolidation

* Conspiracy theory

* Consumer (behavior, choice, preference)

* (thought) Contagion

* Contrarian / contrarianism

* (illusion of) Control

* Conventional wisdom

* Corporate behavioral finance, corporate governance

* Cost averaging

* (speculative) Crash / Bubble

* Craze

* Critical point / threshold / mass /coupling / temperature / cluster, etc.

* Crowd behavior

* Cult companies

* Cultural bias, culture, market culture

* Curse of knowledge

* Cycle / cycle-trend

 

D

* Debiasing

* De-learning

* Debt averse / aversion

* Deception (in financial markets)

* Decision, decision-making

* Default decision preference

* Deification / demonization

* Delaying tactics

* (Self-) Delusion

* Denial (of realities)

* Diffusion (of information)

* Disappointment aversion

* (investment) Discipline

* Disequilibrium

* Disinformation

* Disposition effect

* (trend) Disruption

* Dissemination (of information)

* (price, return, market) Distortion

* (statistical) Distribution curve anomalies

* Distribution / Accumulation phase

* Divestiture aversion

* Dividend puzzle

* Dominant mental interest

* Domino effect

* Doubt

* Dot-com / dotcom bubble / craze

* Drive

* Dynamical systems

 

E

* Economic behavior

* Economic man

* (market) Effect

* Efficiency, (in)efficiency (economic, technical)

* Efficient market hypothesis

* Efficient (market, price)

* (primacy of the) Ego

* (return, price) Elasticity

* EMH

* Emergence

* Emotion, emotional

* Emotional bias

* Emotional intelligence / literacy / reasoning

* Empathy

* Endowment effect

* Entrepreneur psychology and behavior, Entrepreneurship

* Endowment effect

* Envy

* Epidemic

* (dynamical) Equilibrium

* Equity premium, equity risk premium puzzle

* Ethical, ethics (in business and financial decisions / information)

* (getting) Even, get eventis

* Evolutionary economics / finance

* Executive behavior

* (mathematical) Expectancy / Expectation (of value)

* Expectancy bias / effect

* (rational-mimetic) Expectations

* Expected return

* Expected utility

* Expected value

* (illusion of) Experience

* Experimental (micro) economics / finance

* (market) Externalities

* (law of) Extremes, extreme risk

* Extrinsic value

 

F

* FA

* Fad

* Fair (deal) / unfair

* Fair price / value / valuation

* Fairness

(followed in next column)

* (logical) Fallacy

* Fallen angel

* Familiarity

* Fashion

* Fat tails / wings (in distribution curves)

* (Greed &) Fear

* Feedback loop / positive feedback

* Feeling

* Female investing

* Fluctuation

* Focalism, focusing effect, focalization

* Foot in the door

* Fractals / Multifractals

* Frame (dependence, effect) / Framing (bias)

* Fund manager / management behavior / performance

* Fundamental analysis (FA), valuation, value

* Fundamental financial data

* Fundamental investors / traders

* Funnel effect

* Fuzzy logic

G-H

* Gamble / Gambler / Gambling

* Gambler's fallacy / paradox

* Game playing

* Game theory

* GARCH / ARCH models

* Gender attitudes to money management

* Generalization

* Genetic algorithm, computing

* Genetic utility

* Get even bias, Get-eventis

* Glamour stocks

* Goodhart law

* Goal

* Greater (or bigger) fool delusion

* Greed (& Fear)

* Group behavior

* Groupthink

* Growth investing / stock

* Gullibility

* Gunning

* Guru

* H coefficient, exponent

* Habit

* Halo effect

* Heavy tail

* Hemline theory

* Herd instinct, behavior, mentality, Herding

* Heteroskedasticity

* Heuristic (bias / shortcut / limited)

* (availability, representativeness) Heuristic

* Hindsight bias

* Home bias

* Hope (& fear)

* (investment) Horizon

* Hot hand

* House money effect

* Hubris

* Hurst coefficient, exponent

* Hype

* Hyperactivity

* Hysteresis

* (mass, crowd, collective) Hysteria

 

* (rational) Ignorance

* Illiquidity

* Illusion

* Image

* Imitation

* Inaction

* (perverse) Incentive

* Indecision

* Independence, (non) Independent (in decision distribution)

* Inefficiency, inefficient

* Inertia

* Information (incidence of, reaction to)

* Information anomaly

* Information asymmetry

* Information bias

* Information cascade

* Information dissemination

* Information economics

* Information overload

* (mental) Information processing

* Intention, intentionality

* Instinct, intuition

* Intrinsic value

* Investor psychology / style

* Irrational, irrationality

* January effect

* (Markovian, quantum) Jump

* Kiss of death

* Knowledge, Knowledge acquisition

* Knowledge asymmetry

* (illusion of) Knowledge

* Kurtosis

* Lag, latency

* Laziness, lazy thinking

* Lead-lag

* Learning (social)

* Leptokurtic distribution, leptokurtosis

* (financial) Lifecycle

* Liquidity

* (Flight to) Liquidity

* Liquidity crisis

* Liquidity premium

* Liquidity squeeze

* Liquidity trap

* Literacy

* Logical fallacy

* Long bias, longshot bias

* Long tails

* Loss averse, aversion

* Luck, luck puzzle, luck vs. skill

* Lyapunov exponent

 

M

* Magical thinking, numbers

* Mania (collective)

* Manipulation, manipulate

* Mass behavior, hysteria, market

* Maximization (of utility, of reward / risk)

* Mean-reversion / reverting

* Mean-variance

* Media distortion

* Meme, memetic

* Memory (short, long)

* Mental accounts / accounting / compartments

* Microeconomics paradoxes (St Petersburg, Allais...)

* Mimicry

* (price) Misalignment

* Misperception

* Mispricing

* Misreaction (to info)

* Misrepresentation

* Mob psychology

* (trading, pricing, investment...) Model, Modeling

* Mojo

* Momentum, momentum effect

* Momentum investing / trading

* Money attitude

* Money illusion / monetary illusion

* (investor / market) Mood

* (general / social) Mood

* Moral

* Moral hazard

* Moral hypocrisy

* Motivation, motive

* (investor) Motivation

* Mysticism, mystical, mystique

* (mental) Myopia

 

N-O

* Narcissism, narcissist

* Narration, narrative

* Narrow thinking

* (human) Needs

* Neighborhood effect

* Neural / neuronal nets

* Neuro-linguistic, Neuro-semantics

* Neuroeconomics, Neurofinance

* Neuropsychology

* Neuroscience

* Neutral market, Neutral trend

* (effect of / reaction to) News

* Noise trader / Noise trading

* Non-Independence

* Non-linearity, nonlinear effect / system

* Non-stationary

* Norms (social)

* Nostalgia stocks

* Numeracy bias

* Numerology

* Obedience to "experts"

* Observer bias

* Objective

* Ophelimity

* Optimism / optimistic bias, overoptimism

* Ostrich effect

* Overconfidence, overconfident

* Overleverage

* Overpricing / underpricing

* Overreaction / underreaction

* Overreliance (on experts, models, rules, objectives, norms...)

* Overtrade, overtrading

* Oversimplification

 

P-Q

* Pain (and pleasure)

* Panic

* Paradigm

* (decision) Paradoxes

* Paralysis

* Passive investing / management

* PBR (P/B) effect

* Peer influence / pressure / conformity / fear

* P/E (PER) effect

* Perceived risk, risk perception

* Perception

* Percolate, Percolating, percolation threshold

* Persistence (in fractals / trends / biases / volatility)

* (money, investment) Personality

* Perverse effect, incentive

* Peso problem anomaly

* Pessimism

* Phase transition

* (market) Play, Player, Playing

* Pleasure (and pain)

* (market) Positioning

* Ponzi scheme

* Power law

* Precision bias

(followed in next column)

* (economic) Preferences interactions, reversal, intransitivity

* (psychological) Pressure

* (bid, psychological) Price

* (fair) Price

* Price anomaly

* Price information

* Price-earnings ratio, price to book ratio

* (Asset) Pricing

* Pride

* Primacy / priming effect

* Principal- agent theory

* Probability / Probabilities (objective, subjective, conditional)

* Procrastination

* Profile / Profiling 1 (stock types)

* Profile / Profiling 2 (investor types)

* Projection bias

* Propaganda

* Prospect theory

* Prototype

* Proximity bias

* Pseudo-certainty, pseudo-instinct

* Psychology (of investing, markets, money...)

* (economic, financial) Psychology

* Psychosociology / Psycho-sociology

* Public behavioral finance / economics

* Public choice / public policy bias

* Pump and dump

* Pyramidal scheme

* QA

* Quality premium

* Quant

* Quant fund

* Quantitative analysis / QA

* Quantitative behavioral finance

* Quantitative investment / trading

* Quantum lump, jump

 

R

* Random, randomness

* Random walk hypothesis / RWH

* Range estimate aversion

* (risk of) Rare events

* (Ir-) Rational, (Ir-) Rationality

* Rational bubble, expectations, bias

* Rational choice theory

* (bounded, near) Rationality

* (mental) Rationalization, rationalize

* Reaction to info, news, events, signals

* Real estate market anomalies/ herding/ boom

* Rebiasing

* Recency bias, effect

* Reductionism

* Reference point, (mental) reference

* Reflex, reflexive bias, reflexivity, circularity

* Regime switching

* Regret aversion / avoidance / minimization. Expected Regret

* (overconfidence in) Regulation

* Reputation (of professionals)

* Reputation (of stocks)

* (mental/cognitive) Representation,

* Representativeness heuristic

* Resonance

* Reversion / reverting / revert (to the mean / to the other extreme)

* (financial) Risk

* (small) Risk

* (Specific / systematic) Risk

* Risk perception

* Risk premium

* Risk premia puzzle

* Risk-taking attitude, aversion, perception, preference, profile, tolerance, seeking

* Rogue trader

* Rotation (of attention, interest, image)

* Round number anchoring

* Rumor dissemination

* RWH

 

S

* Salience, saliency, salient

* (economic, financial) Satisfaction

* (financial) Scam

* (method of) Scenarios

* Schema, Schemata

* Script

* Seasonal anomaly, Seasonality

* (economic) Sector / concept fad

* Selection bias / Selectivity bias

* Selective attention/ exposure/ memory/ perception / reporting

* Selectivity bias

* Self adaptation, self organization

* Self attribution

* Self control bias, self discipline bias

* Self esteem

* Self-defeating prophecy

* Self-delusion

* Self-fulfilling prophecy

* Self-illusion

* Self-serving bias

* Selling aversion

* Semi-volatility

* (investor / market) Sentiment

* Sexual urge

* Shooting star

* Short term bias

* Signal, signaling

* Size anomaly / effect

* Skew, skewness / Asymmetry

* Small numbers (law of)

* Social, social anomaly / behavior / bias / cognition / effect (general definition)

* Social behavior / effect / influence (on finance / economics)

* Social learning curve

* Social psychology

* Social representation

* Social responsibility

* Social utility

* Socioeconomics, economic sociology

* Sociopsychology

* Soft computing

* Systematic risk

* (financial) Speculation

* Spin

* Spin glass model

* Spotlight stocks

* Standard finance

* Stereotype

* Status quo bias

* Status seeking

* Sticky (price) stickiness

* Stochastics, stochastic calculation

* Stock image

* Stock profile / profiling / type

* (good) Story, Storytelling

* (investment) Strategy

* Stubbornness

* Stupidity

* Style of investing, trading

* Subprime crisis

* Sunk-cost fallacy

* Superstition

* Surprise

* Survivor bias, survival

* Swarming

* (dynamical / complex) System

* System trading

* Systematic bias

* Systematic risk

* Systemic crisis / risk

 

T-U

* (statistical) Tail risk

* TA / Technical analysis

* Testosterone

* Throwing the sponge

* Tilt, Tilting

* Time arbitrage, value

* (Investment) Time horizon, preference, span

* Tipping / Transition / Triggering point

* Trading pattern, style

* Transitive preferences / reasoning, transitivity

* Transmission of information

* Transparency premium

* Trend (as fashion or momentum)

* Trend following / persistence

* Triggering / Tipping point

* Trophy seeking

* Trust

* Tunnel vision

* Type / Prototype

* Uncertainty (vs. risk)

* Uncertainty aversion / avoidance / premium

* Unconscious behavior, decision

* Underadjustment

* Underconfidence, underconfident

* Underpricing / overpricing

* Undertrading

* Underreaction / overreaction

* Unfair

* Unintended consequence

* Utility (in economics and finance)

* (expected) Utility

* Utility maximization

 

V-Z

* (asset, stock) Valuation

* Value

* (fair) price / value, valuation

* (economic / expected / intrinsic) stock Value

* (extrinsic) Value

* Value investing

* Value puzzle

* Value stock

* Value trap

* Vicious / virtuous circle

* Viral communication

* (excess) Volatility

* (downside or semi-) Volatility

* Volatility cluster

* Volatility smile

* Volatility puzzle

* Weak, neglected, overlooked signal

* Wealth effect

* Wealth frame

* Weather bias / effect

* Willpower

* Winner's curse

* Wisdom

* Wishful thinking

* Yin-yang asset valuation

 

 

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