Neurofinance versus the efficient markets hypothesis

摘要

AbstractThis paper develops the implication of neurofinance with respect to the efficient markets hypothesis. Neurofinance informs us that thinking imposes strain on the mind, in the sense that thinking is a comparatively laborious, biologically costly, and neurologically expensive cognitive process. The paper shows that people balance the costs and benefits of thinking and demonstrates mathematically that such balancing makes financial markets inefficient.