Do Superstitious Traders Lose Money?
On April 25, 2017, Professor Utpal Bhattacharya of HKUST, gave a seminar on behavioral finance under the topic “Do suspicious traders lose money?”.
Standard models of financial markets assume people behave rationally. Behavioral finance builds on this foundation by taking insights from cognitive psychology to explain puzzling observations in asset prices that cannot be explained by reason.
To illustrate on the topic, Prof. Bhattacharya gave three examples from his research on behavioral finance: superstitious traders in Taiwan, haunted houses in Hong Kong, and left-digit fixated traders in the United States.