Rationality Gone Awry?: Decision Making Inconsistent with Economic and Financial Theory

Gives perspective to the increasing evidence of financial and economic anomalies and argues for a comprehensive behavioral framework for economics and finance.

Booknews

Citing recent empirical findings about the way in which people actually make decisions about financial and economic matters, contends that enough deviations from the rationality of traditional decision theory have been documented to throw into doubt the predictive value of those theories. Concedes that such theories will continue to be taught and applied until something better is devised, and suggests ways to better the bad odds. Addressed primarily to intermediate students of economics, business administrations, and other applied programs and to professionals who have run the academic course. Annotation c. by Book News, Inc., Portland, Or.