Academic Press A Fast and Frugal Finance: Bridging Contemporary Behavioral Finance and Ecological Rationality (Perspectives in Behavioral Economics and the Economics of Behavior)

A Fast and Frugal Finance: Bridging Contemporary Behavioural Finance and Ecological Rationality adds psychological reality to classical financial reasoning. It shows how financial professionals can reach better and quicker decisions using the 'fast and frugal' framework for decision-making, adding dramatically to time and outcome efficiency, while also retaining accuracy. The book provides the reader with an adaptive toolbox of heuristic tools and classification systems to aid real-world decisions. Throughout, financial applications are presented alongside real-world examples to help readers solve established problems in finance, including stock buying and selling decisions, when faced with not only risk but fundamental uncertainty. The book concludes by describing potential solutions to financial problems in the forefront of contemporary debates, and calls for taking psychological insights seriously. Review An introduction to financial reasoning from the 'fast and frugal' perspective of behavioral finance that includes techniques for practitioners From the Back Cover A Fast and Frugal Finance adds psychological reality to classical financial reasoning. It shows how financial professionals can reach better and quicker decisions using the fast and frugal framework for decision-making, adding dramatically to time and outcome efficiency, while retaining accuracy. The book provides the reader with an adaptive toolbox of heuristic tools and classification systems to aid real-world decisions. Throughout, financial applications are posed alongside real-world examples, to help readers solve established problems in finance, including stock buying and selling decisions, even in situations of considerable uncertainty and risk. The book concludes by describing potential solutions to financial problems demonstrating unusual complexity such as high frequency trading and machine learning algorithms. About the Author William Forbes is a visiting Professor of Economics at Waterford Institute of Technology, Ireland and Groningen University, Netherlands. Forbes has researched and taught upon behavioural finance for nearly twenty years. Previously he has worked in Exeter, Manchester, Glasgow and Loughborough Universities.Aloysius Igboekwu, Aloysius joined the School of Management and Business at Aberystwyth in January 2012 as a lecturer in Finance from Loughborough University School of Business and Economics. He has recently completed a PhD entitled “Representative agent models of earnings momentum and is currently working on papers from that Thesis. He was also a University lecturer at Loughborough where he taught both Economics and Finance. Prior to this time he spent several years in Commercial and Corporate Banking overseas where he held different management roles.Shabnam Mousavi, PhD (Virginia Polytechnic Institute) joined the Johns Hopkins Carey Business School in April 2013. She is a fellow of the Max Planck Institute for Human Development in Berlin (Center for Adaptive Behavior and Cognition), as well as a Network member of the University of Chicago Wisdom Project (Grant recipient, 2008). She has served on the faculty of statistics at Penn State University and finance at Georgia State and Santa Clara University. Her research is focused on actual decision processes used in daily and professional choice situations, simple and successful heuristic strategies used in complex situations, axiomatic frameworks for rationality and wisdom, Markov chain processes, characterizations of uncertainty, and communication of risk.