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The Jakarta Post
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DKI Jakarta, Indonesia
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The stock market and behavioral economics

  • Pankaj Kumar

Jakarta | Wed, October 10 2012 | 08:59 am

Most economic and financial theories are based on the concept that individuals act rationally and consider all available information in the decision-making process. However, researchers have uncovered a surprisingly large amount of evidence indicating that this is frequently not the case.

Behavioral finance is the study of the methodical errors made by market participants due to psychologic...

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