Recent Developments



New forms or branches of finance have emerged since the development of behavioural finance, including quantitative behavioural finance, emotional finance, experimental finance and neurofinance. Sometimes distinction is made between behavioural finance, which focuses on the phenomena of how people behave when they are faced with choice, and cognitive finance, which looks at what is actually going on within the individual’s mind when they make that choice. We also consider ecological finance and environmental finance. We suggest that indulgence in quantitative behavioural finance is a step backward and an attempt to preserve the methodology of neoclassical finance.


Quantitative behavioural finance Emotional finance Experimental finance Neurofinance Ecological finance Environmental finance 


  1. Al-Nakeeb, B. (2016). Two Centuries of Parasitic Economics: The Struggle for Economic and Political Democracy on the Eve of the Financial Collapse of the West. New York: Private Publication.Google Scholar
  2. Ball, S., Eckel, C. C., & Heracleous, M. (2010). Risk Aversion and Physical Prowess: Prediction, Choice and Bias. Journal of Risk and Uncertainty, 41, 167–193.CrossRefGoogle Scholar
  3. Benartzi, S., & Thaler, R. (1999). Risk Aversion or Myopia? Choices in Repeated Gambles and Retirement Investments, Management Science, 45, 364–381.Google Scholar
  4. Benartzi, S., & Thaler, R. (2007). Heuristics and Biases in Retirement Savings Behavior. Journal of Economic Perspectives, 21, 81–104.CrossRefGoogle Scholar
  5. Bergmann, B. (1999). Abolish the Nobel Prize for Economics. Challenge, 42, 52–67.CrossRefGoogle Scholar
  6. Blommestein, H. J. (2009). The Financial Crisis as a Symbol of the Failure of Academic Finance (A Methodological Digression). Journal of Financial Transformation, 27, 3–8.Google Scholar
  7. Bloomfield, R., & Anderson, A. (2010). Experimental Finance. In K. Baker & J. Nofsinger (Eds.), Behavioral Finance: Investors, Corporations and Markets. New York: Wiley.Google Scholar
  8. Bloomfield, R., & O’Hara, M. (1999). Market Transparency: Who Wins and Who Loses. Review of Financial Studies, 12, 5–35.CrossRefGoogle Scholar
  9. Bloomfield, R., & O’Hara, M. (2000). Can Transparent Markets Survive? Journal of Financial Economics, 55, 425–459.CrossRefGoogle Scholar
  10. Blum, J. P. (1994). Corporate Environmental Responsibility and Corporate Economic Performance: An Empirical Study of the Environmental Involvement of the Top 150 U.S. and Swiss Banks. DBA Thesis, United States International University, College of Business Administration, San Diego.Google Scholar
  11. Bruguier, A. J., Quartz, S. R., & Bossaerts, P. (2010). Exploring the Nature of “Trader Intuition”. Journal of Finance, 65, 1703–1723.CrossRefGoogle Scholar
  12. Caginalp, G., & Balenovich, D. (1999). Asset Flow and Momentum: Deterministic and Stochastic Equations. Philosophical Transactions of the Royal Society A, 357, 2119–2133.CrossRefGoogle Scholar
  13. Caginalp, G., & DeSantis, M. (2011). A Paradigm for Quantitative Behavioral Finance. American Behavioral Scientist, 55, 1014–1034.CrossRefGoogle Scholar
  14. Caginalp, G., Porter, D., & Smith, V. (1998). Initial Cash/Asset Ratio and Asset Prices: An Experimental Study. Proceedings of the National Academy of Science, 95, 756–761.CrossRefGoogle Scholar
  15. De Martino, B., O’Doherty, J. P., Ray, D., Bossaerts, P., & Camerer, C. (2013). In the Mind of the Market: Theory of Mind Biases Value Computation During Financial Bubbles. Neuron, 79, 1222–1231.CrossRefGoogle Scholar
  16. Disatnik, D., & Steinhart, Y. (2015). Need for Cognitive Closure. Risk Aversion, Uncertainty Changes, and Their Effects on Investment Decisions, Journal of Marketing Research, 52, 349–359.Google Scholar
  17. Dittrich, A. V., Güth, W., & Maciejovsky, B. (2005). Overconfidence in Investment Decisions: An Experimental Approach. European Journal of Finance, 11, 471–491.CrossRefGoogle Scholar
  18. Dowd, K. (2014). Math Gone Mad: Regulatory Risk Modeling by the Federal Reserve (p. 754). Policy Analysis, Number: The Cato Institute.Google Scholar
  19. Duran, A. (2006). Overreaction Behavior and Optimization Techniques in Mathematical Finance. PhD Thesis, University of Pittsburgh.Google Scholar
  20. Flood, M. D., Huisman, R., Koedijk, K. G., & Mahieu, R. J. (1999). Quote Disclosure and Price Discovery in Multiple-Dealer Financial Markets. Review of Financial Studies, 12, 37–59.Google Scholar
  21. Forsythe, R., Lundholm, R., & Reitz, T. (1999). Cheap Talk. Fraud, and Adverse Selection in Financial Markets: Some Experimental Evidence, Review of Financial Studies, 12, 481–518.Google Scholar
  22. Gaudiano, P., Shargel, B., Bonabeau, E., & Clough, B. T. (2003). Swarm Intelligence: A New C2 Paradigm with an Application to Control Swarms of UAVs’. 8th ICCRTS Command and Control Research and Technology Symposium, Washington DC, 17–19 June.Google Scholar
  23. Goetzmann, W. N., Dasol, K., Alok, K., & Wang, Q. (2015). Weather-Induced Mood. Institutional Investors, and Stock Returns, Review of Financial Studies, 28, 73–111.CrossRefGoogle Scholar
  24. Golman, R., Hagmann, D., & Miller, J. H. (2015). Polya’s Bees: A Model of Decentralized Decision Making. Science Advances, 1, 1–7.CrossRefGoogle Scholar
  25. Hammond, R. C. (2015). Behavioral Finance: Its History and Its Future. Selected Honors Theses, Paper 30, Southeastern University.Google Scholar
  26. Hendry, D. F. (2004). The ET Interview: Professor David F. Hendry: Interviewed by Neil R. Ericsson, Econometric Theory, 20, 743–804.Google Scholar
  27. Hirsh, A. E., & Gordon, D. M. (2001). Distributed Problem Solving in Social Insects’. Annals of Mathematics and Artificial Intelligence, 31, 199–221.CrossRefGoogle Scholar
  28. Hirshleifer, D. A. (2014). Behavioral Finance.
  29. Ho, S., Li, A., Kinsun, T., & Zhang, F. (2015). CEO Gender, Ethical Leadership and Accounting Conservatism. Journal of Business Ethics, 127, 351–370.CrossRefGoogle Scholar
  30. Horwitz, S. (2012). The Empirics of Austrian Economics, Cato Unbound, 5 September.
  31. Keynes, J. M. (1936). The General Theory of Employment, Interest, and Money. London: Macmillan.Google Scholar
  32. Koenig, S., Szymanski, B., & Liu, Y. (2001). Efficient and Inefficient Ant Coverage Methods. Annals of Mathematics and Artificial Intelligence, 31, 41–76.CrossRefGoogle Scholar
  33. Kumar, A. (2009). Who Gambles in the Stock Market? Journal of Finance, 64, 1889–1933.CrossRefGoogle Scholar
  34. May, R. M., & Arinaminpathy, N. (2009). Systemic Risk: The Dynamics of Model Banking Systems. Journal of the Royal Society, Interface, 7, 238–823.Google Scholar
  35. May, R. M., Levine, S. A., & Sugihara, G. (2008). Complex Systems: Ecology for Bankers. Nature, 451, 893–895.CrossRefGoogle Scholar
  36. Moosa, I. A. (2002). Exchange Rates and Fundamentals: A Microeconomic Approach. Economia Internazionale, 55, 551–571.Google Scholar
  37. Moosa, I. A. (2017). Econometrics as a Con Art: Exposing the Shortcomings and Abuses of Econometrics. Cheltenham: Edward Elgar.CrossRefGoogle Scholar
  38. Nguyen, Y., & Noussair, C. N. (2014). Risk Aversion and Emotions. Economic Review, 19, 296–312.Google Scholar
  39. Nieboer, J. (2015). Group Member Characteristics and Risk Taking by Consensus. Journal of Behavioural and Experimental Economics, 57, 81–88.CrossRefGoogle Scholar
  40. Ramesh, T., & Venkateshwarlu, M. (2011). A New Quantitative Behavioral Model for Financial Prediction, Third International Conference on Information and Financial Engineering, vol.12, Singapore: IACSIT Press.Google Scholar
  41. Romer, P. M. (2015). Mathiness in the Theory of Economic Growth. American Economic Review, 105, 89–93.CrossRefGoogle Scholar
  42. Ross, S. A., Westerfield, R. W., & Jaffe, J. F. (2012). Corporate Finance (10th ed.). New York: McGraw-Hill/Irwin.Google Scholar
  43. Samuelson, P. A. (1947). Foundations of Economic Analysis. Cambridge (MA): Harvard University Press.Google Scholar
  44. Samuelson, P. A. (1952). Economic Theory and Mathematics: An Appraisal, American Economic Review, 42(Papers and Proceedings), 56–66.Google Scholar
  45. Sandor, (2012). Good Derivatives: A Story of Financial and Environmental Innovation. New York: Wiley.Google Scholar
  46. Solow, R. M. (1988). The Wide, Wide World of Wealth. In J. Eatwell & M. Milgate (Eds.), The New Palgrave: A Dictionary of Economics. New York: Stockton Press.Google Scholar
  47. Taffler, R. (2014). Emotional Finance: Theory and Application, Working Paper, Warwick Business School.Google Scholar
  48. Tosi, H. L., Katz, J. P., & Gomez-Mejia, L. R. (1997). Disaggregating the Agency Contract: The Effects of Monitoring. Incentive Alignment, and Term in Office on Agent Decision Making, Academy of Management Journal, 40, 584–602.Google Scholar
  49. Tuckett, D., & Taffler, R. J. (2012). Fund Management: An Emotional Finance Perspective. Charlottesville (VA): Research Foundation of CFA Institute.Google Scholar
  50. Velupillai, K. V. (2005). The Unreasonable Ineffectiveness of Mathematics in Economics. Cambridge Journal of Economics, 29, 849–872.CrossRefGoogle Scholar
  51. Wagner, I. A., & Bruckstein, A. M. (2001). From Ants to A(ge)nts: A Special Issue on Ant-Robotics, Annals of Mathematics and Artificial Intelligence, 31, 1–5.Google Scholar
  52. Walters, A., Ramiah, V., & Moosa, I. A. (2016). Ecology and Finance: A Quest for Congruency. Journal of Behavioral and Experimental Finance, 10, 54–62.CrossRefGoogle Scholar
  53. Wang, Y., Zhou, W., & Chang, K. (2013). Effect of Decision Makers’ Education Levels on their Corporate Risk Taking. Social Behavior and Personality: An International Journal, 41, 1225–1230.CrossRefGoogle Scholar
  54. Xepapadea, A. (2008). Ecological Economics. The New Palgrave Dictionary of Economics (second edition), London: Palgrave Macmillan.Google Scholar
  55. Zahorec, L., & Chisari, J. (2013). Hybrid Quantitative/Qualitative Behavioral Finance Equity Strategies: Stepping Behind The Curtain, J.P. Morgan Asset Management.
  56. Zhou, X. Y. (2010). Mathematicalising Behavioural Finance. In Proceedings of the International Congress of Mathematicians, Hyderabad, India.Google Scholar

Copyright information

© The Author(s) 2017

Authors and Affiliations

  1. 1.School of Economics, Finance and MarketingRMITMelbourneAustralia
  2. 2.School of CommerceUNISAAdelaideAustralia

Personalised recommendations