FYI: Behavioral finance is the study of human behavior. There is extensive literature on how that behavior leads to investment errors, including the mispricing of assets. This is one reason Princeton psychology professor Daniel Kahneman was awarded the Nobel Memorial Prize in Economic Sciences in 2002.
The field also provides us with other important insights from which behavioralists have learned ways to change behaviors for the better. For example, in their book “Nudge,” Richard Thaler and Cass Sunstein described the following real-life experiment in tax compliance.
Regards,
Ted
https://www.etf.com/sections/index-investor-corner/swedroe-peers-can-change-financial-behavior?nopaging=1
