Authors: Colleen Tokar Asaad
Addresses: Department of Finance, College of Business Administration, Kent State University, Kent, OH 44242, USA
Abstract: This article advocates for more experimental finance research and emphasises that combining knowledge from various academic disciplines has the potential to inform all types of financial decisions. The psychology literature shows how the limits of human cognition affect financial decision-making, experimental financial research in the laboratory links participant expectations with participant behaviour, research from neuroscience demonstrates what part of the brain is driving particular behaviours, and empirical evidence from market-wide data sheds light on the aggregate impact of individual decision-makers. Together, this knowledge will empower individuals to make more informed financial decisions.
Keywords: experimental finance; psychology; investor expectations; neuro-economics; behavioural finance; decision making; financial decisions; neuroscience; human cognition.
International Journal of Behavioural Accounting and Finance, 2012 Vol.3 No.3/4, pp.244 - 269
Received: 16 Jul 2012
Accepted: 10 Dec 2012
Published online: 10 Apr 2015 *