Quantitative behavioral finance[1] is a new discipline that uses mathematical and statistical methodology to understand behavioral biases in conjunction with valuation.
The research can be grouped into the following areas:
- Empirical studies that demonstrate significant deviations from classical theories.[2]
- Modeling using the concepts of behavioral effects together with the non-classical assumption of the finiteness of assets.
- Forecasting based on these methods.
- Studies of experimental asset markets and use of models to forecast experiments.