Behavioral Finance: What Everyone Needs to Know®
Behavioral Finance: What Everyone Needs to Know®

Behavioral Finance: What Everyone Needs to Know®

H. Kent Baker; Greg Filbeck; John R. Nofsinger


  • Offers a balanced explanation of the broad issues associated with behavioral finance in a succinct but authoritative manner
  • Examines foundations and psychological concepts, cognitive biases, emotional biases, and social/cultural influences, investor behavior, nudging, and cognitive ability
  • Uses a question and answer format to illustrate and answer relevant issues
  • Enables readers to browse for topics of interest if they choose not to read the book from cover-to-cover
  • Provides strategies for mitigating various behavioral biases

We are taught not to throw good money after bad or to cry over spilt milk. Yet we do both, otherwise we would not be taught not to. People often make choices based on what has been lost rather than what can be gained. Such choices are particularly costly in the world of finance.
Behavioral Finance: What Everyone Needs to Know® provides an overview of common shortcuts and mistakes people make in managing their finances. It covers the common cognitive biases or errors that occur when people are collecting, processing, and interpreting information. These include emotional biases and the influence of social factors, from culture to the behavior of one's peers. These effects vary during one's life, reflecting differences in due to age, experience, and gender. 
Among the questions to be addressed are: How did the financial crisis of 2007-2008 spur understanding human behavior? What are market anomalies and how do they relate to behavioral biases? What role does overconfidence play in financial decision- making? And how does getting older affect risk tolerance?


Chapter 1. Foundations and Psychological Concepts
Chapter 2. Cognitive Biases
Chapter 3. Emotional Biases and Social/Cultural Influences 
Chapter 4. Investor Behavior 
Chapter 5. Nudge: The Influence of Frame Dependence 
Chapter 6. Cognitive Ability



H. Kent Baker is University Professor of Finance in the Kogod School of Business at American University. He has authored or edited 30 books and published more than 290 articles. His books Investor Behavior and Investment Traps Exposed received book excellence awards. Professor Baker is among the top 1% of the most prolific authors in finance.
Greg Filbeck is Samuel P. Black III Professor of Finance and Risk Management and Director of the Black School of Business at Penn State Erie, The Behrend College. He has authored or edited 10 books and published more than 95 academic articles. Professor Filbeck has conducted training for professional designations for the last two decades.
John R. Nofsinger is William H. Seward Chair in International Finance at the University of Alaska Anchorage. He has authored or edited 11 books that have translations in 11 languages and published 63 scholarly articles. He is author of the book, The Psychology of Investing 6th edition, which is; popular with financial advisors.

"If you are looking for a book that explains behavioral finance in plain understandable language, then this book is for you. This book adeptly applies the classic Socratic method to explain why the behavioral approach better explains the behavior of normal people than the neoclassical approach." --Hersh Shefrin, Mario L. Belotti Professor of Finance, Santa Clara University


ISBN : 9780190868734

H. Kent Baker; Greg Filbeck; John R. Nofsinger
256 ページ
140 x 210 mm
What Everyone Needs to Know





Behavioral Finance: What Everyone Needs to Know®

Behavioral Finance: What Everyone Needs to Know®

Behavioral Finance: What Everyone Needs to Know®