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Best Behavioral Finance Books You Must Read

Our list of some of the best Behavioral Finance books & series in recent years. Get inspired by one or more of the following books.

1. Thinking, Fast and Slow (2013)

Best Behavioral Finance Books You Must ReadMajor New York Times bestsellerWinner of the National Academy of Sciences Best Book Award in 2012Selected by the New York Times Book Review as one of the ten best books of 2011A Globe and Mail Best Books of the Year 2011 TitleOne of The Economist’s 2011 Books of the Year One of The Wall Street Journal’s Best Nonfiction Books of the Year 20112013 Presidential Medal of Freedom RecipientKahneman’s work with Amos Tversky is the subject of Michael Lewis’s The Undoing Project: A Friendship That Changed Our MindsIn the international bestseller, Thinking, Fast and Slow, Daniel Kahneman, the renowned psychologist and…
Author(s): Daniel Kahneman

2. Misbehaving: The Making of Behavioral Economics (2016)

Best Behavioral Finance Books You Must ReadWinner of the Nobel Prize in Economics Get ready to change the way you think about economics.Nobel laureate Richard H. Thaler has spent his career studying the radical notion that the central agents in the economy are humans―predictable, error-prone individuals. Misbehaving is his arresting, frequently hilarious account of the struggle to bring an academic discipline back down to earth―and change the way we think about economics, ourselves, and our world.Traditional economics assumes rational actors. Early in his research, Thaler realized these Spock-like automatons were nothing like real people. Whether buying a clock radio,…
Author(s): Richard H. Thaler

3. Advances in Behavioral Finance, Volume II (The Roundtable Series in Behavioral Economics) (2005)

Best Behavioral Finance Books You Must ReadThis book offers a definitive and wide-ranging overview of developments in behavioral finance over the past ten years. In 1993, the first volume provided the standard reference to this new approach in finance–an approach that, as editor Richard Thaler put it, “entertains the possibility that some of the agents in the economy behave less than fully rationally some of the time.” Much has changed since then. Not least, the bursting of the Internet bubble and the subsequent market decline further demonstrated that financial markets often fail to behave as…
Author(s): Richard H. Thaler

4. Inefficient Markets: An Introduction to Behavioral Finance (Clarendon Lectures in Economics) (2000)

Best Behavioral Finance Books You Must ReadThe efficient markets hypothesis has been the central proposition in finance for nearly thirty years. It states that securities prices in financial markets must equal fundamental values, either because all investors are rational or because arbitrage eliminates pricing anomalies. This book describes an alternative approach to the study of financial markets: behavioral finance. This approach starts with an observation that the assumptions of investor rationality and perfect arbitrage are overwhelmingly contradicted by both psychological and institutional evidence. In actual financial…
Author(s): Andrei Shleifer

5. Beyond Greed and Fear: Understanding Behavioral Finance and the Psychology of Investing (Financial Management Association Survey and Synthesis) (2007)

Best Behavioral Finance Books You Must ReadEven the best Wall Street investors make mistakes. No matter how savvy or experienced, all financial practitioners eventually let bias, overconfidence, and emotion cloud their judgment and misguide their actions. Yet most financial decision-making models fail to factor in these fundamentals of human nature. In Beyond Greed and Fear, the most authoritative guide to what really influences the decision-making process, Hersh Shefrin uses the latest psychological research to help us understand the human behavior that guides stock selection, financial services, and corporate financial strategy. Shefrin argues that financial practitioners must…
Author(s): Hersh Shefrin

6. Behavioral Economics (Routledge Advanced Texts in Economics and Finance) (2014)

Best Behavioral Finance Books You Must ReadOver the last few decades behavioral economics has revolutionized the discipline. It has done so by putting the human back into economics, by recognizing that people sometimes make mistakes, care about others, and are generally not as cold and calculating as economists have traditionally assumed. The results have been exciting and fascinating, and have fundamentally changed the way we look at economic behaviour. This textbook introduces all the key results and insights of behavioral economics to a student audience. Ideas such as mental accounting, prospect theory, present bias, inequality…
Author(s): Edward Cartwright

7. Nudge: Improving Decisions About Health, Wealth, and Happiness (2009)

Best Behavioral Finance Books You Must ReadEconomist and the Financial TimesEvery day we make choices—about what to buy or eat, about financial investments or our children’s health and education, even about the causes we champion or the planet itself. Unfortunately, we often choose poorly. Nudge is about how we make these choices and how we can make better ones. Using dozens of eye-opening examples and drawing on decades of behavioral science research, Nobel Prize winner Richard H. Thaler and Harvard Law School professor Cass R. Sunstein show that no choice is ever presented to us in a neutral way, and that we are all…
Author(s): Richard H. Thaler, Cass R. Sunstein

8. Freakonomics: A Rogue Economist Explores the Hidden Side of Everything (P.S.) (2009)

Best Behavioral Finance Books You Must ReadWhich is more dangerous, a gun or a swimming pool? What do schoolteachers and sumo wrestlers have in common? How much do parents really matter? These may not sound like typical questions for an economist to ask. But Steven D. Levitt is not a typical economist. He studies the riddles of everyday life—from cheating and crime to parenting and sports—and reaches conclusions that turn conventional wisdom on its head. Freakonomics is a groundbreaking collaboration between Levitt and Stephen J. Dubner, an award-winning author and journalist. They set out to explore the inner workings of a crack…
Author(s): Steven D. Levitt, Stephen J. Dubner

9. Popularity: A Bridge between Classical and Behavioral Finance (2019)

Best Behavioral Finance Books You Must ReadClassical and behavioral finance are often seen as being at odds, but the idea of “popularity” has been introduced as a way of reconciling the two approaches. Investors like or dislike various characteristics of securities for rational reasons (as in classical finance) or irrational reasons (as in behavioral finance), which makes the assets popular or unpopular. In the capital markets, popular (unpopular) securities trade at prices that are higher (lower) than they would be otherwise; hence, the shares may provide lower (higher) expected returns.This book builds on this idea and expands…
Author(s): Roger G. Ibbotson, Thomas M. Idzorek, et al.

10. The Psychology of Investing (2017)

Best Behavioral Finance Books You Must ReadWhile traditional finance focuses on the tools used to optimize return and minimize risk, this book explains how psychology can affect our decisions more than financial theory. Covering the ways investors actually behave, this is the first book of its kind to delve into the ways biases influence investment behavior, and how overcoming these biases can increase financial success. Now in its sixth edition, this classic text features: Fully updated with the latest research in the field, The Psychology of Investing will prove fascinating and educational for advanced…
Author(s): John R. Nofsinger

11. The Foundations of Behavioral Economic Analysis (2017)

Best Behavioral Finance Books You Must ReadThis is the first definitive introduction to behavioral economics aimed at advanced undergraduate and postgraduate students. Authoritative, cutting edge, yet accessible, it guides the reader through theory and evidence, providing engaging and relevant applications throughout. It is divided into nine parts and 24 chapters: Part I is on behavioral economics of risk, uncertainty, and ambiguity. The evidence against expected utility theory is examined, and the behavioral response is outlined; the best empirically supported theory is prospect theory. Part II considers…
Author(s): Sanjit Dhami

12. Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions (2010)

Best Behavioral Finance Books You Must ReadWhy do our headaches persist after we take a one-cent aspirin but disappear when we take a fifty-cent aspirin? Why do we splurge on a lavish meal but cut coupons to save twenty-five cents on a can of soup? When it comes to making decisions in our lives, we think we’re making smart, rational choices. But are we? In this newly revised and expanded edition of the groundbreaking New York Times bestseller, Dan Ariely refutes the common assumption that we behave in fundamentally rational ways. From drinking coffee to losing weight, from buying a car to choosing a romantic partner, we consistently…
Author(s): Dan Ariely

13. Advances in Behavioral Finance (The Roundtable series in behavioral economics) (1993)

Best Behavioral Finance Books You Must ReadModern financial markets offer the real world’s best approximation to the idealized price auction market envisioned in economic theory. Nevertheless, as the increasingly exquisite and detailed financial data demonstrate, financial markets often fail to behave as they should if trading were truly dominated by the fully rational investors that populate financial theories. These markets anomalies have spawned a new approach to finance, one which as editor Richard Thaler puts it, “entertains the possibility that some agents in the economy behave less than fully rationally some of the time.” Advances in…
Author(s): Richard H. Thaler

Top 10 Best Behavioral Finance Books – So what would be your alternatives to educate yourself in behavioral finance? There are not many. Of course, you can go for costly seminars. But that won’t always be feasible as seminars on behavioral finance don’t happen regularly and even if you would find one or two, they would be so expensive Books shelved as behavioral-finance: Thinking, Fast and Slow by Daniel Kahneman, Misbehaving: The Making of Behavioral Economics by Richard H. Thaler, Nu You can’t study behavioral finance without coming across the research of Richard Thaler. An author of five different books of behavior finance, as well as The Professor of Economics and Behavioral Science at the University of Chicago’s Graduate School of Business–Richard Thaler’s work is well respected in the field. Related BeFi Books. The books below focus on various subjects that relate to Behavioral Finance, but did not fit neatly into our first three categories. They are listed in the order they were published (based on most recent edition date), and shown in order of recency. We also include our judgment on the intended audience to help you find a Behavioural Finance: Insights into Irrational Minds and Markets is essential reading for fund managers, strategists, asset allocators, portfolio constructors, corporate financiers and analysts. It is also suitable for MBAs and students studying finance and investment management.

We highly recommend you to buy all paper or e-books in a legal way, for example, on Amazon. But sometimes it might be a need to dig deeper beyond the shiny book cover. Before making a purchase, you can visit resources like Genesis and download some behavioral finance books mentioned below at your own risk. Once again, we do not host any illegal or copyrighted files, but simply give our visitors a choice and hope they will make a wise decision.

CFA 2019 Schweser - Level 3 SchweserNotes Book 1: ETHICAL AND PROFESSIONAL STANDARDS, THE ASSET MANAGEMENT INDUSTRY AND PROFESSIONALISM, AND BEHAVIORAL FINANCE

Author(s): Schweser, Kaplan
Publisher: , Year: 2019, Size: 4 Mb, Download: pdf
ID: 2279581

Multi-Market Antitrust Economics

Author(s): Scott Gilbert
Publisher: Palgrave Macmillan, Year: 2018, Size: 2 Mb, Download: pdf
ID: 2179780

Behavioral Economics

Author(s): Edward Cartwright
Publisher: Routledge, Year: 2018, Size: 16 Mb, Download: epub
ID: 2197578

Behavioral Finance for Private Banking: From the Art of Advice to the Science of Advice

Author(s): Kremena K. Bachmann, Enrico G. De Giorgi, Thorsten Hens
Publisher: Wiley, Year: 2018, Size: 9 Mb, Download: pdf
ID: 2224890

Illustrating Finance Policy with Mathematica

Author(s): Nicholas L. Georgakopoulos
Publisher: Springer International Publishing;Palgrave Macmillan, Year: 2018, Size: 6 Mb, Download: pdf
ID: 2311346

Success in a Low-Return World: Using Risk Management and Behavioral Finance to Achieve Market Outperformance

Author(s): Michael J. Oyster
Publisher: Springer International Publishing,Palgrave Macmillan, Year: 2018, Size: 4 Mb, Download: pdf
ID: 2312376

Behavioral economics

Author(s): Cartwright, Edward
Publisher: Routledge, Year: 2018, Size: 6 Mb, Download: pdf
ID: 2358104

Econophysics and Capital Asset Pricing: Splitting the Atom of Systematic Risk

Author(s): James Ming Chen
Publisher: Palgrave Macmillan, Year: 2017, Size: 3 Mb, Download: pdf
ID: 2153290

Please note that this booklist is not absolute. Some books are absolutely record-breakers according to Washington Post, others are written by unknown writers. On top of that, you can always find additional tutorials and courses on Coursera, Udemy or edX, for example. Are there any other relevant links you could recommend? Drop a comment if you have any feedback on the list.

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