Department Chair
Dr. Frederick Floss
Date of Award
5-2017
Access Control
Open Access
Degree Name
Applied Economics, M.A.
Department
Economics and Finance Department
Advisor
Dr. Theodore Byrley
Department Home page
http://economics.buffalostate.edu/
First Reader
Dr. Theodore Byrley
Second Reader
Dr. Frederick Floss
Third Reader
Dr. Xingwang Qian
Abstract
The purpose of this thesis is to study the contributions behavioral economics and finance have had on the understanding on how the stock market works. The idea that psychology plays a role in influencing the stock market can be dated back to Adam Smith who wrote about individual’s behavior in his work Theory of Moral Sentiments. It wasn’t until the latter half of the 20th century that behavioral economics became accepted as a counter to Eugene Fama’s widely accepted theory of Efficient Market Hypothesis. This paper will analyze the development of behavioral economics, review the main contributors to the field and review main theories as it relates to the psychology of the human mind, and how it can influence the stock market.
Recommended Citation
Nagy, Justin L., "Behavioral Economics and the Effects of Psychology on the Stock Market" (2017). Applied Economics Theses. 24.
https://digitalcommons.buffalostate.edu/economics_theses/24
