The Financial Psychology of Worry and Women by Victor Ricciardi http://papers.ssrn.com/sol3/papers.cfm?abstract... Victor Ricciardi. The Financial Psychology of Worry and Women. (February, 2008). Social Science Research Network Working Paper Series. This paper provides a review of significant academic studies and non-academic research endeavors in the realm of negative emotions (with an emphasis on worry), gender, and decision making. The author encourages behavioral finance researchers to place greater attention into the development of new research studies and academic papers in the area of negative affect (feelings, emotions, moods). The financial psychology literature on gender and worry documents the emerging hypothesis that researchers should explore is women reveal greater degrees of worry than their male counterparts for different categories of financial services and investment products.
A Risk Perception Primer: A Narrative Research Review of the Risk Perception Literature in Behavioral Accounting and Behavioral Finance http://papers.ssrn.com/sol3/papers.cfm?abstract... Victor Ricciardi. A Risk Perception Primer: A Narrative Research Review of the Risk Perception Literature in Behavioral Accounting and Behavioral Finance. (July 2004). Social Science Research Network Working Paper Series. A significant topic within the behavioral finance literature is the notion of perceived risk pertaining to novice investors (i.e. individuals, finance students) and investment professionals (i.e. financial planners, security analysts). the author reveals the first of its kind thorough review of the academic research studies on perceived risk/risk perception from the disciplines of behavioral accounting since 1975 and behavioral finance since the late 1960s. This literature review incorporates 12 works from behavioral accounting and 71 endeavors from behavioral finance. In addition, the behavioral finance literature review section also includes approximately 10 narrative research reviews from risk perception studies in behavioral economics.
What is Behavioral Finance ? by Victor Ricciardi http://papers.ssrn.com/sol3/papers.cfm?abstract... Victor Ricciardi and Helen K. Simon. What is Behavioral Finance?. Business, Education & Technology Journal, Vol. 2, No. 2, Fall 2000, 1-9. While conventional academic finance emphasizes theories such as Modern Portfolio Theory (MPT) and the Efficient Market Hypothesis (EMH), the emerging field of behavioral finance investigates the cognitive factors and emotional issues that impact the decision-making process of individuals, groups, and organizations. This paper presents an introduction to some general principles of behavioral finance including: overconfidence, cognitive dissonance, regret theory, and prospect theory. Also, this article provides strategies to assist individuals to resolve these mental errors and emotional pitfalls by recommending some important investment approaches for those who invest in stocks and mutual funds. Note: This paper serves as a very good introductory reading for an undergraduate class in finance and economics.
A Research Starting Point for the New Scholar: A Unique Perspective of Behavioral Finance by Victor Ricciardi http://papers.ssrn.com/sol3/papers.cfm?abstract... Victor Ricciardi. A Research Starting Point for the New Scholar: A Unique Perspective of Behavioral Finance. ICFAI Journal of Behavioral Finance, Vol. 3, No. 3, pp. 6-23, September 2006. The first time this author became aware of behavioral finance was in June 1998. At that point of time, there was no apparent or precise source of information for a new scholar interested in the field to select a research starting point. It was the author's intention, by writing this paper, to provide a research starting point to new scholars, and inspire them to conduct research in this field. The author of this paper provides the reader with a discussion concerning the discipline of behavioral finance with the new scholar in mind. Behavioral finance investigates the cognitive factors and emotional issues that individuals, financial experts, and traders exhibit within the securities markets.
The Psychology of Risk: The Behavioral Finance Perspective by Victor Ricciardi http://www.mrw.interscience.wiley.com/emrw/9780... Victor Ricciardi. The Psychology of Risk: The Behavioral Finance Perspective. HANDBOOK OF FINANCE: VOLUME 2: INVESTMENT MANAGEMENT AND FINANCIAL MANAGEMENT, Frank J. Fabozzi, ed., John Wiley & Sons, pp. 85-111, 2008. Since the mid-1970s, hundreds of academic studies have been conducted in risk perception-oriented research within the social sciences (e.g., nonfinancial areas) across various branches of learning. The academic foundation pertaining to the “psychological aspects”¯ of risk perception studies in behavioral finance, accounting, and economics developed from the earlier works on risky behaviors and hazardous activities. This research on risky and hazardous situations was based on studies performed at Decision Research (an organization founded in 1976 by Paul Slovic) on risk perception documenting specific behavioral risk characteristics from psychology that can be applied within a financial and investment decision-making context.
Risk: Traditional Finance versus Behavioral Finance by Victor Ricciardi http://www.mrw.interscience.wiley.com/emrw/9780... Victor Ricciardi. Risk: Traditional Finance Versus Behavioral Finance. HANDBOOK OF FINANCE: VOLUME 3: VALUATION, FINANCIAL MODELING, AND QUANTITATIVE TOOLS, Frank J. Fabozzi, ed., pp. 11-38, John Wiley & Sons, 2008. Within academic finance, the focal point of traditional (or standard) finance researchers involves the objective nature of risk. In contrast, behavioral finance academics provide an extensive examination in which risk is based on a combination of both subjective and objective factors. The behavioral finance perspective incorporates a qualitative aspect of risk (e.g., the influence of cognitive issues and emotional factors) that is highly significant if on a micro level it is acknowledged that the decision maker is an essential aspect of defining and understanding risk.
SSRN History of Finance eJournal, Victor Ricciardi, Editor http://www.ssrn.com/update/fen/fen_history-fina... This item provides a link to the SSRN History of Finance eJournal that distributes working papers and accepted paper abstracts covering all aspects of the historical nature of finance and investments. This eJournal promotes communication among researchers and practitioners interested in various elements of the history of financial thought. Victor Ricciardi is the Editor and the Founder of this eJournal that was started in October 2008.
SSRN Behavioral & Experimental Finance eJournal, Victor Ricciardi, Editor http://www.ssrn.com/update/fen/fen_behav-exper-... This item provides a link to the SSRN Behavioral & Experimental Finance eJournal that publishes working and accepted paper abstracts covering all aspects of behavioral and experimental finance. Victor Ricciardi is the Editor of this eJournal.
How Product Managers Price Products For Irrational Customers http://www.theaccidentalpm.com/pricing/how-prod... Who has to deal with irrational customers - isn’t “irrational”¯ just another word for “crazy”¯? If you’ve ever had to set a price for your product, then you know what I’m talking about. No matter what price you pick (or how you pick it) people are always going to be telling you that it’s the wrong price. Is everyone crazy?
