An independent professional's take on the latest news and trends in global financial markets

Archive for the ‘Behavioural finance’ Category

The many insights of prospect theory

My latest column in the Financial Times looks at some of the helpful ways that prospect theory illuminates how asset prices are set and fund managers are rewarded.  Prospect theory originally developed from studies carried out by psychologist Daniel Kahneman and his colleague Amos Tversky. Prof Kahneman’s must read book Thinking Fast, Thinking Slow continues to ride high in the bestseller lists. To read the column on the FT website follow this link.

Written by Jonathan Davis

July 2, 2014 at 12:41 PM