I have used Bounded Rationality to explain Incomplete Markets right with my PhD thesis at NYU and in a number of publications in Asset Management, Quantitative Finance & Mathematical Finance and in also some Genetic Algorithmic Physics models. Now if Bounded Rationality is the effect of Complexity of the Environment then I have derived the Information and Energy Meanfields as in Quantum Physics and published in to class Physics journals. So although not many I do have top class publications in both Behavioral Finance & Mathematical Finance & Physics. But of course due regards to Prof. Thaler and others.SKM PhD QC FEPS(D)
In the field of behavioral finance, I propose scientific research to verify the research problem regarding behavioral behavior of investors operating on the securities markets. In this issue, I suggest conducting scientific research in order to obtain the answer to the following research questions:
- Is the importance of psychology of financial markets and behavioral economics in securities markets decreasing after the global financial crisis?
- After the global financial crisis, are investors operating in the securities markets more cautious in making investment decisions, or do they more thoroughly analyze the investment risk of investing in capital markets?
- Were studies previously conducted to determine possible changes in the significance of financial market psychology and behavioral economics in capital markets, including securities markets, after the global financial crisis of 2008?
- If research shows that the importance of financial market psychology and behavioral economics in capital markets is decreasing, what is this mainly determined by?
- Is it the result of post-crisis greater awareness of investment risk among investors, or also a change in the structure of the dominant segments of investors operating on capital markets, or is it also the result of an increase in the number of transactions carried out by computerized transaction systems?
- How are behavioral finances related to behavioral behavior of investors operating on the securities markets changing due to the increasing use of ICT and Industry 4.0 in the scope of development and increasing the share in concluded automatic transactions, computerized transaction systems used by banks and investment funds performing short-term transactions , speculative, lasting even fractions of a second but with the use of large funds, so large that they are unavailable to the average individual investor?
My no 1 would be 'Richard Thaler' who won the noble prize in 2017 on his research how human weaknesses such as a lack of rationality and self-control can ultimately affect markets.
He is also credited with developing the theory of “mental accounting.2 other names I would suggest at the top with Thaler are Amos Tversky & Daniel Kahneman.