Behavioral Finance
A Theoretical Analysis of Foundations and Models
DOI :
https://doi.org/10.23882/emss26310Mots-clés :
Behavioral Finance, Prospect Theory, Cognitive Biases, Bounded Rationality, cognitive biases, market anomalies, classical financeRésumé
This article examines the theoretical foundations of behavioural finance and analyses its relationship with classical financial theory, with the aim of clarifying whether it constitutes an autonomous paradigm or a complementary corrective framework to the rational-agent model.
Drawing on a narrative literature review of seminal contributions in behavioural economics and finance, the article critically examines five core theoretical pillars: prospect theory, mental accounting, overconfidence, herd behaviour, and heuristics. These frameworks were selected on the basis of three criteria: their extensive empirical validation, their comprehensive coverage of cognitive and emotional biases affecting investor decisions, and their direct practical relevance. They are systematically compared with the assumptions of standard finance across seven analytical dimensions synthesised in a comparative table.
The analysis shows that behavioural finance offers a robust explanatory framework for persistent market anomalies — excessive volatility, speculative bubbles, disposition effects — that classical models cannot adequately account for. Rather than constituting a complete theoretical replacement, behavioural finance represents a theoretically grounded extension of the rational-agent framework, introducing psychological realism without abandoning formal rigour. The comparative analysis reveals fundamental divergences in agent model, decision-making process, market functioning, arbitrage conception, and methodological orientation.
Behavioural finance has matured into a second-generation discipline integrating social, cultural and neuro-cognitive dimensions. Its complementarity with classical finance opens productive avenues for interdisciplinary research, with direct implications for portfolio management, financial advice, and market regulation. Future research perspectives include neurofinance, digital behavioural finance, and the integration of climate-related biases into investment decision models.
Références
Baker, M., & Wurgler, J. (2013). Behavioral corporate finance: An updated survey. In G. Constantinides, M. Harris, & R. Stulz (Eds.), Handbook of the Economics of Finance (Vol. 2, pp. 357–424). Elsevier. https://doi.org/10.1016/B978-0-44-453594-8.00005-7
Banerjee, A. V. (1992). A simple model of herd behavior. Quarterly Journal of Economics, 107(3), 797–817. https://doi.org/10.2307/2118364
Barberis, N., Mukherjee, A., & Wang, B. (2016). Prospect theory and stock returns: An empirical test. Review of Financial Studies, 29(11), 3068–3107. https://doi.org/10.1093/rfs/hhw049
Barberis, N., & Thaler, R. H. (2003). A survey of behavioral finance. In G. Constantinides, M. Harris, & R. Stulz (Eds.), Handbook of the Economics of Finance (Vol. 1, pp. 1053–1128). Elsevier. https://doi.org/10.1016/S1574-0102(03)01027-6
Baumeister, R. F., & Leary, M. R. (1997). Writing narrative literature reviews. Review of General Psychology, 1(3), 311–320. https://doi.org/10.1037/1089-2680.1.3.311
Bell, D. E. (1982). Regret in decision making under uncertainty. Operations Research, 30(5), 961–981. https://doi.org/10.1287/opre.30.5.961
Bikhchandani, S., Hirshleifer, D., & Welch, I. (1992). A theory of fads, fashion, custom, and cultural change as informational cascades. Journal of Political Economy, 100(5), 992–1026. https://doi.org/10.1086/261849
Camerer, C., & Loewenstein, G. (2004). Behavioral economics: Past, present, future. In C. Camerer, G. Loewenstein, & M. Rabin (Eds.), Advances in Behavioral Economics (pp. 3–51). Princeton University Press.
Camerer, C., Loewenstein, G., & Rabin, M. (2011). Advances in Behavioral Economics. Princeton University Press.
D'Acunto, F., Prabhala, N., & Rossi, A. G. (2019). The promises and pitfalls of robo-advising. Review of Financial Studies, 32(5), 1983–2020. https://doi.org/10.1093/rfs/hhz014
Daniel, K., Hirshleifer, D., & Subrahmanyam, A. (1998). Investor psychology and security market under- and overreactions. Journal of Finance, 53(6), 1839–1885. https://doi.org/10.1111/0022-1082.00077
Fama, E. F. (1970). Efficient capital markets: A review of theory and empirical work. Journal of Finance, 25(2), 383–417. https://doi.org/10.2307/2325486
Fama, E. F. (1998). Market efficiency, long-term returns, and behavioral finance. Journal of Financial Economics, 49(3), 283–306. https://doi.org/10.1016/S0304-405X(98)00026-9
Gervais, S., & Odean, T. (2001). Learning to be overconfident. Review of Financial Studies, 14(1), 1–27. https://doi.org/10.1093/rfs/14.1.1
Hong, H., & Stein, J. C. (1999). A unified theory of underreaction, momentum trading, and overreaction in asset markets. Journal of Finance, 54(6), 2143–2184. https://doi.org/10.1111/0022-1082.00184
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263–291. https://doi.org/10.2307/1914185
Keynes, J. M. (1936). The General Theory of Employment, Interest and Money. Macmillan.
Loomes, G., & Sugden, R. (1982). Regret theory: An alternative theory of rational choice under uncertainty. Economic Journal, 92(368), 805–824. https://doi.org/10.2307/2232669
Mackay, C. (1841). Extraordinary Popular Delusions and the Madness of Crowds. Richard Bentley.
Odean, T. (1998). Are investors reluctant to realize their losses? Journal of Finance, 53(5), 1775–1798. https://doi.org/10.1111/0022-1082.00072
Peterson, R. L. (2007). Inside the Investor's Brain: The Power of Mind over Money. Wiley.
Pompian, M. (2006). Behavioral Finance and Wealth Management. Wiley.
Ricciardi, V., & Simon, H. K. (2000). What is behavioral finance? Business, Education and Technology Journal, 2(2), 1–9.
Ritter, J. R. (2003). Behavioral finance. Pacific-Basin Finance Journal, 11(4), 429–437. https://doi.org/10.1016/S0927-538X(03)00048-9
Sefil, S., & Çilingiroğlu, H. K. (2011). Davranışsal finans: Tarihsel bir süreç içinde literature bakış. Muhasebe ve Finansman Dergisi, 51, 189–206.
Selden, G. C. (1912). Psychology of the Stock Market. Ticker Publishing.
Shefrin, H. (2000). Beyond Greed and Fear: Understanding Behavioral Finance and the Psychology of Investing. Harvard Business School Press.
Shefrin, H. (2001). Do investors expect higher returns from safer stocks than from riskier stocks? Journal of Psychology and Financial Markets, 2(4), 176–181. https://doi.org/10.1207/S15327760JPFM0204_1
Shiller, R. J. (1981). Do stock prices move too much to be justified by subsequent changes in dividends? American Economic Review, 71(3), 421–436.
Shiller, R. J. (2000). Irrational Exuberance. Princeton University Press.
Shleifer, A., & Vishny, R. W. (1997). The limits of arbitrage. Journal of Finance, 52(1), 35–55. https://doi.org/10.1111/j.1540-6261.1997.tb03807.x
Simon, H. A. (1955). A behavioral model of rational choice. Quarterly Journal of Economics, 69(1), 99–118. https://doi.org/10.2307/1884852
Smith, A. (1759). The Theory of Moral Sentiments. A. Millar.
Snyder, H. (2019). Literature review as a research methodology: An overview and guidelines. Journal of Business Research, 104, 333–339. https://doi.org/10.1016/j.jbusres.2019.07.039
Statman, M. (1999). Behavioral finance: Past battles and future engagements. Financial Analysts Journal, 55(6), 18–27. https://doi.org/10.2469/faj.v55.n6.2311
Statman, M. (2014). Behavioral finance: Finance with normal people. Borsa Istanbul Review, 14(2), 65–73. https://doi.org/10.1016/j.bir.2014.03.001
Statman, M. (2019). Behavioral Finance: The Second Generation. CFA Institute Research Foundation.
Stigler, G. J. (1950). The development of utility theory. Journal of Political Economy, 58(4), 307–327. https://doi.org/10.1086/256962
Subrahmanyam, A. (2008). Behavioural finance: A review and synthesis. European Financial Management, 14(1), 12–29. https://doi.org/10.1111/j.1468-036X.2007.00415.x
Thaler, R. H. (1985). Mental accounting and consumer choice. Marketing Science, 4(3), 199–214. https://doi.org/10.1287/mksc.4.3.199
Thaler, R. H. (Ed.). (1993). Advances in Behavioral Finance. Russell Sage Foundation.
Thaler, R. H. (1999). Mental accounting matters. Journal of Behavioral Decision Making, 12(3), 183–206. https://doi.org/10.1002/(SICI)1099-0771(199909)12:3<183::AID-BDM318>3.0.CO;2-F
Thaler, R. H. (Ed.). (2005). Advances in Behavioral Finance, Volume II. Princeton University Press.
Thaler, R. H. (2016). Misbehaving: The Making of Behavioral Economics. W. W. Norton & Company.
Tomer, J. F. (2007). What is behavioral economics? Journal of Socio-Economics, 36(3), 463–479. https://doi.org/10.1016/j.socec.2006.12.007
Tversky, A., & Kahneman, D. (1974). Judgment under uncertainty: Heuristics and biases. Science, 185(4157), 1124–1131. https://doi.org/10.1126/science.185.4157.1124
Tversky, A., & Kahneman, D. (1992). Advances in prospect theory: Cumulative representation of uncertainty. Journal of Risk and Uncertainty, 5(4), 297–323. https://doi.org/10.1007/BF00122574
Von Neumann, J., & Morgenstern, O. (1944). Theory of Games and Economic Behavior. Princeton University Press.
Zhang, X. F. (2006). Information uncertainty and stock returns. Journal of Finance, 61(1), 105–137. https://doi.org/10.1111/j.1540-6261.2006.00831.x
Téléchargements
Publiée
Comment citer
Numéro
Rubrique
Licence
(c) Tous droits réservés Meriem Essoussi, My Omar ESSARDI 2026
Ce travail est disponible sous licence Creative Commons Attribution - Pas d’Utilisation Commerciale 4.0 International.
