Wednesday, March 22, 2006
How does "Behavioural Finance" influence our discussion?
The result of this discussion was the new research area Behavioural Finance a match up between psychological and economic research. Yet, as far as I know, there is no real theory published which cope all aspects or even the major aspects, but to achieve network effects in the network area it is interesting to understand why human react not always logically. Right now the main discussion is about the finance area, but first steps have been done to adapt the early research achievements to non-financial areas. These results could contribute to understand the differences between the success and downfall of e.g. social networks or other Web2.0 based platforms. Businesses are now more and more interacting with consumers, where decisions are less logical driven (less Homo oeconomicus) compare to business decisions. So the existing models were probably more suitable or acceptable in the industrial age than they are in the network area?
That was just a thought I had and I am interested what you guys think about it!