{"id":1199,"date":"2022-12-04T18:18:22","date_gmt":"2022-12-04T18:18:22","guid":{"rendered":"https:\/\/bhide.net\/wordpress_files\/index.php\/the-birth-of-behavioral-finance\/"},"modified":"2022-12-04T18:18:22","modified_gmt":"2022-12-04T18:18:22","slug":"the-birth-of-behavioral-finance","status":"publish","type":"post","link":"http:\/\/localhost:10004\/index.php\/the-birth-of-behavioral-finance\/","title":{"rendered":"The Birth of Behavioral Finance."},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Jottings for my forthcoming book on Knightian uncertainty.<\/h2>\n\n\n<p class=\"wp-block-paragraph\">Finance had not interested Herbert Simon and the other &#8220;old&#8221; behavioral economists. It also did not feature prominently in the work of Kahneman and Tversky&#8217;s who pioneered the new, and more successful behavioral economics. But other new behavioral stars, such as Andrei Shleifer who won the John Bates Clark medal in 1999, focused on finance. <br \/>In July 1991, Yale&#8217;s Robert Shiller and Cornell&#8217;s Richard Thaler<a id=\"_ednref2\" href=\"\/#_edn2\">[i]<\/a>) (who would win economics Nobels in 2013 and 2017 respectively), organized the first NEBR-sponsored Workshop in Behavioral Finance. The workshops held twice a year attracted a few but highly engaged participants. Some like Shleifer were rising stars in mainstream finance and economics and the papers they presented at the workshops were often then published in top-tier journals. <br \/>A wide-eyed outsider to this community I attended regularly; Shiller even asked me to discuss a paper in the July 1994 workshop.<a id=\"_ednref2\" href=\"\/#_edn2\">[ii]<\/a>)<\/p>\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"http:\/\/localhost:10004\/wp-content\/uploads\/DALL\u00b7E-2023-02-06-15.43.49-formidable-barriers-and-forgotten-pathways.pngamarbhide\/files\/2022\/12\/invitation-from-shiller-to-discuss-paper.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"910\" src=\"http:\/\/localhost:10004\/wp-content\/uploads\/DALL\u00b7E-2023-02-06-15.43.49-formidable-barriers-and-forgotten-pathways.pngamarbhide\/files\/2022\/12\/invitation-from-shiller-to-discuss-paper-1024x910.jpg\" alt=\"\" class=\"wp-image-1200\" srcset=\"http:\/\/localhost:10004\/wp-content\/uploads\/2022\/12\/invitation-from-shiller-to-discuss-paper-1024x910.jpg 1024w, http:\/\/localhost:10004\/wp-content\/uploads\/2022\/12\/invitation-from-shiller-to-discuss-paper-300x267.jpg 300w, http:\/\/localhost:10004\/wp-content\/uploads\/2022\/12\/invitation-from-shiller-to-discuss-paper-768x682.jpg 768w, http:\/\/localhost:10004\/wp-content\/uploads\/2022\/12\/invitation-from-shiller-to-discuss-paper-1536x1365.jpg 1536w, http:\/\/localhost:10004\/wp-content\/uploads\/2022\/12\/invitation-from-shiller-to-discuss-paper-2048x1820.jpg 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n<p class=\"wp-block-paragraph\"> \u00a0<\/p>\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n<p class=\"wp-block-paragraph\"><a id=\"_edn1\" href=\"\/#_ednref1\">[i]<\/a> In 1995, Thaler moved to the University of Chicago&#8217;s business school.<\/p>\n\n\n<p class=\"wp-block-paragraph\"><a id=\"_edn1\" href=\"\/#_ednref1\">[ii]<\/a> The list of workshops is posted (as of December 4, 2022 at <a href=\"http:\/\/www.econ.yale.edu\/~shiller\/behfin\/\">http:\/\/www.econ.yale.edu\/~shiller\/behfin\/<\/a>. Frustratingly the only workshop <strong>not<\/strong> detailed at the link is the one held on July 1994.\u00a0 But I did find Shiller&#8217;s letter to me and which I have posted above.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Jottings for my forthcoming book on Knightian uncertainty. Finance had not interested Herbert Simon and the other &#8220;old&#8221; behavioral economists.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[39],"tags":[],"class_list":["post-1199","post","type-post","status-publish","format-standard","hentry","category-knightian-uncertainty-book"],"_links":{"self":[{"href":"http:\/\/localhost:10004\/index.php\/wp-json\/wp\/v2\/posts\/1199","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/localhost:10004\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/localhost:10004\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/localhost:10004\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/localhost:10004\/index.php\/wp-json\/wp\/v2\/comments?post=1199"}],"version-history":[{"count":0,"href":"http:\/\/localhost:10004\/index.php\/wp-json\/wp\/v2\/posts\/1199\/revisions"}],"wp:attachment":[{"href":"http:\/\/localhost:10004\/index.php\/wp-json\/wp\/v2\/media?parent=1199"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/localhost:10004\/index.php\/wp-json\/wp\/v2\/categories?post=1199"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/localhost:10004\/index.php\/wp-json\/wp\/v2\/tags?post=1199"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}