ISSN 1671-3710
CN 11-4766/R

›› 2003, Vol. 11 ›› Issue (3): 262-266.

Previous Articles     Next Articles

The Progress of Investing Psychology Theories of America

Weng Xuedong   

  1. Sociology Department, Central University of Finance and Economics, Beijing 100081
  • Received:2003-02-10 Revised:1900-01-01 Online:2003-05-15 Published:2003-05-15
  • Contact: Weng Xuedong

Abstract: American investing psychology originated in 1980’s. During the process of their research on investing activities, western economists found that many mathematic models of microeconomics and finance can’t satisfactorily explain and anticipate the investment in reality, therefore put more efforts on the research of human mind and behavior in investing, and achieved substantial results. Hence, Daniel Kahneman, the investing psychologist of Princeton University of America, was awarded the 2002’s Nobel Prize in Economics. In this paper, four research achievements of western investing psychology are described. They are Overreaction Theory, Prospect Theory, Regret Theory and Overconfidence Theory.

Key words: investing psychology, overreaction, prospect theory, regret theory, overconfidence

CLC Number: