Behavioral Finance: Psychology, Decision-Making, and Markets

"Thinking, Fast and Slow" is a great book to get an introduction to behavioral biases and how those biases affect financial thinking. "Behavioral Finance: Psychology, Decision-Making, and Markets" takes off from there and provides for a more thorough exploration of behavioral biases and heuristics in finance. It is well written and clear. It did a good job of filling-in information I didn't grasp in "Thinking, Fast and Slow".

The content is fascinating. And the authors clearly know the field well. But I believe this is a case of very knowledgeable people who unfortunately lack the skill of explaining things well. In some instances in the book, a concept is introduced and not explicitly defined. In another that comes to mind, part of a mathematical equation is dropped without explanation. The writing style is pedantic. The book generally reads as if it wasn't edited, or was edited by someone who knows too much about the field to be able to identify when something isn't adequately explained. The use of words such as, "obviously," and "clearly," are tell-tale signs of a lack of empathy from the authors of the reader's perspective. The math in the book actually isn't overly complicated, but it could have been made so much easier than how it was presented. My wife, who has a better head for numbers than me, rewrote some of the math sections in a more straightforward way and I understood immediately what had eluded me upon reading the book. I don't want to make the authors feel badly; I appreciate how difficult writing text books must be and applaud the effort here. I would suggest that in a second edition, you think of the Malcolm Gladwell books or Freakonomics as guides for writing style. You don't need to dumb it down. But perhaps consider moving out of the abstract realm onto the concrete when you can. If you took the same content and explained it better, you could have a book that makes an important contribution to finance.

If you are curious about why people make the mistakes they make investing, this is the book for you. Whether you are a financial advisor or client, you will find this useful for recognizing and avoiding biased decisions.

Although I like it very much, I think the formal models could be better explained.

I have read 3 books on the subject now and this one is the best. I do have a background in finance and quantitative economics, which may have helped me through some of the more difficult math parts. If this is a subject you are truly interested in, this is the best book available.

tooooo technical

The book is amazing, the author explains clearly the important concepts, easy to read, very interesting topic, its a very good guide to introduce you to the field of behavioral economics focused on financy completely

Book was sent brand new. Great book for learning about the intersection of finance and psychology

ottimo libro, come da descrizione, spedizione puntuale, ma prezzo decisamente troppo elevato per la taratura della trattazione