Reviewed by Andy Smith Modern portfolio theory (MPT) and behavioral finance represent differing schools of thought that attempt to explain investor behavior. Perhaps the easiest way to think about ...

Several disciplines fall under the broad label of behavioral science, including: In order to understand the full complexity of human behavior, some behavioral scientists synthesize theories, concepts, ...

Behavioral economic theories are used to explain most everyday decisions, such as what people buy, how they manage their finances, and whether or not they make healthy lifestyle choices.

Prospect theory and other work by Tversky and Kahneman continues to inform many areas of behavioral economics research today. What role have Richard Thaler and behavioral economists at the University ...