Behaviorist - Definition
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What is a Behaviorist?
A behaviorist refers to one who adheres to the behavioral economics theory. This theory holds that investors neither act rationally nor do they act in their best interests.
Investing decisions, like every human activity, are subject to a complex mix of environment, emotion, and bias. The failure of following pure reason results in market inefficiencies, as well as, profit opportunities for investors who are informed.
Behavioral economics rejects the rational choice model, as well as the efficient market hypothesis, both of which have completely rational investor behavior based on available information.
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Academics research on Behaviorist
- Economicsand psychology: Lessons for our own day from the early twentieth century, Lewin, S. B. (1996). Economics and psychology: Lessons for our own day from the early twentieth century.Journal of Economic Literature,34(3), 1293-1323.
- Joyful economists: remarks on the history ofeconomicsand psychology from the happiness studies perspective, Edwards, J. M. (2010). Joyful economists: remarks on the history of economics and psychology from the happiness studies perspective.Journal of the History of Economic Thought,32(4), 611-613.
- [PDF]Social exchange theory under scrutiny: A positive critique of its economic-behavioristformulations, Zafirovski, M. (2005). Social exchange theory under scrutiny: A positive critique of its economic-behaviorist formulations.Electronic journal of sociology,2(2), 1-40.
- John R. Commons and the foundations of institutionaleconomics, Hodgson, G. M. (2003). John R. Commons and the foundations of institutional economics.Journal of Economic Issues,37(3), 547-576.
- The approach of institutionaleconomics, Hodgson, G. M. (1998). The approach of institutional economics.Journal of economic literature,36(1), 166-192.