If like myself, you’ve been fascinated by the irrational nature of markets, and have come to believe that behavioral psychology probably plays a bigger role in asset pricing than economic fundamentals, I recommend you check out the book:
Predictably Irrational: The Hidden Forces That Shape Our Decisions
The books is written by MIT professor Dan Ariely. According to Ariely, our understanding of economics, now based on the assumption of a rational subject, should, in fact, be based on our systematic, unsurprising irrationality. Ariely argues that greater understanding of previously ignored or misunderstood forces (emotions, relativity and social norms) that influence our economic behavior brings a variety of opportunities for reexamining individual motivation and consumer choice, as well as economic and educational policy.
Ariely’s insights into irrationality have very interesting applications to investing.
You can buy the book at Amazon.com..
Click Here to Buy It.
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