The efficient markets hypothesis has been the central proposition in finance for nearly thirty years. It states that securities prices in financial markets must equal fundamental values, either because all investors are rational or because arbitrage eliminates pricing anomalies. This book describes an alternative approach to the study of financial markets: behavioral finance. This approach starts with an observation that the assumptions of investor rationality and perfect arbitrage are overwhelmingly contradicted by both psychological and institutional evidence. In actual financial markets, (...) less than fully rational investors trade against arbitrageurs whose resources are limited by risk aversion, short horizons, and agency problems. The book presents and empirically evaluates models of such inefficient markets. Behavioral finance models both explain the available financial data better than does the efficient markets hypothesis and generate new empirical predictions. These models can account for such anomalies as the superior performance of value stocks, the closed end fund puzzle, the high returns on stocks included in market indices, the persistence of stock price bubbles, and even the collapse of several well-known hedge funds in 1998. By summarizing and expanding the research in behavioral finance, the book builds a new theoretical and empirical foundation for the economic analysis of real-world markets. (shrink)

Engages with the impact of modern technology on experimental physicists. This study reveals how the increasing scale and complexity of apparatus has distanced physicists from the very science which drew them into experimenting, and has fragmented microphysics into different technical traditions.

The efficient markets hypothesis has been the central proposition in finance for nearly thirty years. It states that securities prices in financial markets must equal fundamental values, either because all investors are rational or because arbitrage eliminates pricing anomalies. This book describes an alternative approach to the study of financial markets: behavioral finance. This approach starts with an observation that the assumptions of investor rationality and perfect arbitrage are overwhelmingly contradicted by both psychological and institutional evidence. In actual financial markets, (...) less than fully rational investors trade against arbitrageurs whose resources are limited by risk aversion, short horizons, and agency problems. The book presents and empirically evaluates models of such inefficient markets. Behavioral finance models both explain the available financial data better than does the efficient markets hypothesis and generate new empirical predictions. These models can account for such anomalies as the superior performance of value stocks, the closed end fund puzzle, the high returns on stocks included in market indices, the persistence of stock price bubbles, and even the collapse of several well-known hedge funds in 1998. By summarizing and expanding the research in behavioral finance, the book builds a new theoretical and empirical foundation for the economic analysis of real-world markets. (shrink)

Why is science so credible? Usual answers center on scientists' objective methods or their powerful instruments. In his new book, Thomas Gieryn argues that a better explanation for the cultural authority of science lies downstream, when scientific claims leave laboratories and enter courtrooms, boardrooms, and living rooms. On such occasions, we use "maps" to decide who to believe—cultural maps demarcating "science" from pseudoscience, ideology, faith, or nonsense. Gieryn looks at episodes of boundary-work: Was phrenology good science? How about cold fusion? (...) Is social science really scientific? Is organic farming? After centuries of disputes like these, Gieryn finds no stable criteria that absolutely distinguish science from non-science. Science remains a pliable cultural space, flexibly reshaped to claim credibility for some beliefs while denying it to others. In a timely epilogue, Gieryn finds this same controversy at the heart of the raging "science wars.". (shrink)

Although Considered By A Few Critics That The Sentence Structures Of The Book Are Quite Incomprehensible And Almost Unbearable To Read, The Book Is An Essential ...

For this second edition, the editors have returned to Austin's original lecture notes, amending the printed text where it seemed necessary.

George Soros is a legend in the world of finance. His Quantum Fund has been the best-performing investment fund in history and his foundations have helped reshape the post-Cold War world. Now Soros applies all of his wisdom, expertise and insight to explain what's happening in the collapsing global economy. The Russian economy has collapsed, leading to punishing inflation and economic hardship; scores of Japanese banks are in ruin; the once-booming economies of Thailand, Malaysia and Indonesia have imploded; and even (...) in Europe and America the markets lurch violently, wiping out gains with each passing week. In THE CRISIS OF GLOBAL CAPITALISM Soros dissects the current crisis and economic theory, revealing how theoretical assumptions have combined with human behaviour to lead to today's calamities. He shows how unquestioning faith in market forces blinds us to crucial instabilities, and how those instabilities have chain-reacted to cause the current crisis which has the potential to get much, much worse. Offering brilliant solutions to the global meltdown, this is essential reading for anyone involved with the new economy - that is, all of us. (shrink)

A significant contribution to the development of social theory which provides a comprehensive summary of the various traditions. Barnes offers an accessible introduction for undergraduates which presents his own arguments along the way.; It is intended that this work will be adopted on undergraduate and postgraduate courses on social theory within social and political science. It will also appeal to students of social psychology, social anthropology and social geography.