Published in association with the Russell Sage Foundation

Summary:A definitive and wide-ranging overview of developments in behavioural finance over the past ten years. This second volume presents twenty recent papers by leading specialists that illustrate the abiding power of behavioural finance

Contents:
A survey of behavioral finance / Nicholas Barberis and Richard H. Thaler
The limits of arbitrage / Andrei Shleifer and Robert W. Vishny
How are stock prices affected by the location of trade? / Kenneth A. Froot and Emil M. Dabora
Can the market add and subtract? Mispricing in tech stock carve-outs / Owen A. Lamont and Richard H. Thaler
Valuation ratios and the long-run stock market outlook : an update / John Y. Campbell and Robert J. Shiller
Myopic loss aversion and the equity premium puzzle / Shlomo Benartzi and Richard H. Thaler
Prospect theory and asset prices / Nicholas Barberis, Ming Huang, and Tano Santos
Contrarian investment, extrapolation, and risk / Josef Lakonishok, Andrei Shleifer, and Robert W. Vishny
Evidence on the characteristics of cross-sectional variation in stock returns / Kent Daniel and Sheridan Titman
Momentum / Narasimhan Jegadeesh and Sheridan Titman
Market efficiency and biases in brokerage recommendations / Roni Michaely and Kent L. Womack
A model of investor sentiment / Nicholas Barberis, Andrei Shleifer, and Robert W. Vishny
Investor psychology and security market under- and overreaction / Kent Daniel, David Hirshleifer, and Avanidhar Subrahmanyam
A unified theory of underreaction, momentum trading, and overreaction in asset markets / Harrison Hong and Jeremy C. Stein
Individual investors / Brad M. Barber and Terrance Odean
Naive diversification strategies in defined contribution savings plans / Shlomo Benartzi and Richard H. Thaler
Rational capital budgeting in an irrational world / Jeremy C. Stein
Earnings management to exceed thresholds / François Degeorge, Jayendu Patel, and Richard Zeckhauser
Managerial optimism and corporate finance / J. B. Heaton