Life Cycle Model Of Crowd Behavior by Henry O. Pruden, Ph.D.
ARTICLE SYNOPSIS ...Life Cycle Model Of Crowd Behavior
by Henry O. Pruden, Ph.D.
For a large part of the past 30
years, the discipline of finance
has been under the aegis of the
efficient market hypothesis.
But in recent years, enough
anomalies have piled up, cracking
its dominance of the field.
As a consequence, the arrival
of new thinking to explain
market behavior has warranted
attention, and its name is behavioral
Behavioral finance proponents believe that markets reflect
the thoughts, emotions, and actions of normal people as
opposed to the idealized economic investor underlying the